Which of the Following Is Not an Audit Challenge Relevant

question 72

Multiple Choice

Which of the following is not an audit challenge relevant to fair value estimation of Level 1,2,and 3 assets?

• A)Determining identical assets and active markets.
• B)Assessing client methodology and cash flows to originally estimate value.
• C)Determining appropriate model and inputs expected cash flows.
• D)Determining similar assets and relevant markets.

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Definitions:

Market Power

The ability of a firm or group of firms to manipulate or influence the price or supply of a good or service in the market.

High-Speed

Typically refers to technologies or transportation methods that operate significantly faster than traditional standards, often used in contexts like high-speed internet or high-speed trains.

Magnetically Powered

Devices or systems that are operated or driven by magnetic force or magnetic fields.

Decreasing Average Cost

A situation where the average cost of production decreases as the quantity of output increases, often due to economies of scale.