Debt instruments can be classified as trading securities, available-for-sale securities, or held-to-maturity securities; auditors should ensure that such debt instruments are classified, properly, in the financial statements consistent with accounting standards.

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Auditors have a responsibility to ensure that debt instruments are classified properly in the financial statements according to accounting standards. These classifications include trading securities, available-for-sale securities, and held-to-maturity securities. Therefore, the statement is true.

Debt Instruments Can Be Classified as Trading Securities, Available-For-Sale Securities