Which of the following is not an audit challenge relevant to fair value estimation of Level 1,2,and 3 assets?
A)Determining identical assets and active markets.
B)Assessing client methodology and cash flows to originally estimate value.
C)Determining appropriate model and inputs expected cash flows.
D)Determining similar assets and relevant markets.

Question

Quizplus · Accepted Answer

Assessing client methodology and cash flows to originally estimate value is not an audit challenge relevant to fair value estimation of Level 1,2,and 3 assets. The other options listed are relevant challenges when auditing fair value estimation of assets.

Which of the Following Is Not an Audit Challenge Relevant