The Reported Fair Market Value of Securities Held by the Client

question 3

Multiple Choice

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

• A)Comparing the values to those securities held by the auditing firm.
• B)Confirming the fair values with the client as of the close of the year.
• C)Comparing the fair values with the fair values of similar securities.
• D)Comparing the fair values to credible publications and websites.

---

Definitions:

Interest Rate

The percentage of a sum of money charged for its use, typically expressed as an annual percentage rate.

Undergraduate Students

Individuals enrolled in a college or university program leading to a bachelor's degree or similar qualification.

Private Student Loan

A non-federal lending option for education, provided by banks or financial institutions, that is not backed by the government.

Bank

A financial institution authorized to receive deposits, offer loans, and provide various financial services to its customers.