When auditing the valuation assertion of an equity method investment, which of the following is the auditor most likely to do?
A)Inspect stock certificates.
B)Obtain audited financial statements of the investee company.
C)Obtain the market price of the stock as of year-end.
D)Review management's calculations.

Question

Quizplus · Accepted Answer

The auditor is most likely to obtain audited financial statements of the investee company to verify the valuation of an equity method investment, as these statements provide evidence of the investee's financial position and performance.

When Auditing the Valuation Assertion of an Equity Method Investment