The reported fair market value of securities held by the client can be verified by the auditor through which of the following procedures?

Question

Quizplus · Accepted Answer

Comparing the fair values to credible publications and websites is the most reliable method for verifying the reported fair market value of securities held by the client. This provides an objective and independent source for fair values, which can be compared to the client's reported values to detect any discrepancies or errors. Comparing to securities held by the auditing firm or confirming with the client may not be independent sources or may not provide objective evidence of fair value. Comparing to similar securities may also be subjective and may not reflect the specific characteristics or conditions of the client's securities.

The Reported Fair Market Value of Securities Held by the Client