To satisfy the valuation assertion when auditing an investment accounted for by the equity method,an auditor most likely would

Question

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To ensure the correctness of the valuation assertion, the auditor needs to examine the audited financial statements of the investee company, which will provide information about the investee's financial position and financial performance, on which the equity method is based. The other options, such as inspecting stock certificates or obtaining market quotations, do not directly relate to the valuation assertion under the equity method. Reviewing the broker's advice or canceled check for acquisition may provide evidence of ownership, but not valuation.

To Satisfy the Valuation Assertion When Auditing an Investment Accounted