Which of the following procedures would be most important in the audit of an investment valued at fair value?

Question

Quizplus · Accepted Answer

Developing an independent estimate of the fair value measurement is the most important procedure in the audit of an investment valued at fair value as it provides the auditor with a benchmark against which they can compare management's estimate of the fair value. This helps the auditor in determining whether management's estimate is reasonable and reliable. While comparing the balance with the prior year (A) and reading footnote disclosures (B) are important procedures, they don't provide sufficient evidence of the accuracy of the fair value measurement. Inquiring of management (C) is also important, but it doesn't provide an independent estimate of fair value.

Which of the Following Procedures Would Be Most Important in the Audit