The Reported Fair Market Value of Securities Held by the Client

question 33

Multiple Choice

The reported fair market value of securities held by the client can be verified by the auditor by

• 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.

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Definitions:

Ordinance

An order, rule, or law enacted by a municipal or county government to govern a local matter as allowed by state or federal legislation.

Federal Statute

A law enacted by the national government.

Administrative Agencies

Governmental bodies responsible for the oversight and administration of specific functions, often involved in regulating various sectors of public and private activity.

Adjudication

The legal process of resolving a dispute or deciding a case.