When assessing fair value of Level 2 assets,auditors will use information on the sale of identical items in active or inactive markets as a source of audit evidence.

Question

Quizplus · Accepted Answer

Level 2 assets are valued based on observable inputs other than quoted prices for identical assets in active markets, such as quoted prices for similar assets in active markets or quoted prices for identical or similar assets in inactive markets, not directly on sales of identical items.

When Assessing Fair Value of Level 2 Assets,auditors Will Use