Testing the valuation of securities would involve:
A) tracing security values to internal sources of information.
B) comparing inputs used in the valuation process to the underlying documents.
C) tracing amounts shown in the investment ledger to amounts shown on investment statements.
D) None of the above.

Question

Quizplus · Accepted Answer

Testing the valuation of securities involves comparing inputs used in the valuation process to the underlying documents, such as contracts, agreements, and publicly available information. This ensures that the valuation is accurate and reliable. Tracing security values to internal sources of information or tracing amounts shown in the investment ledger to amounts shown on investment statements may be relevant for other purposes, but they do not specifically address the valuation of securities.

Testing the Valuation of Securities Would Involve