When there is a ready market for a financial instrument,the audit procedures related to valuation and disclosures are more straightforward than when the instrument is not readily marketable.

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When a financial instrument is readily marketable, its value can be determined based on market prices and the disclosures are also more easily available. On the other hand, when a financial instrument is not easily marketable, the valuation becomes more subjective and the disclosures may be more limited, which can complicate the audit procedures.

When There Is a Ready Market for a Financial Instrument,the