The significant judgments of "Loaned securities" by an auditor are subject to fair value estimates and also must consider the likelihood of securities that will be returned.

Question

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Since the securities are being lent, the auditor must consider the possibility that they may not be returned and therefore cannot rely solely on historical cost accounting. Fair value estimates must be made, and the likelihood of the securities being returned must also be taken into account.

The Significant Judgments of "Loaned Securities" by an Auditor Are