Interpretations on auditing fair values released.The AICPA AICPA See American Institute of Certified Public Accountants (AICPA). recently issued two Interpretations of Statements on Auditing Standards Statements on Auditing Standards, commonly abbreviated as SAS, provide guidance to external auditors on generally accepted auditing standards (abbreviated as GAAS) in regards to auditing an entity and issuing a report. pertaining per·tain intr.v. per·tained, per·tain·ing, per·tains 1. To have reference; relate: evidence that pertains to the accident. 2. to auditing fair values: Auditing Derivative Instruments Derivative instruments Contracts such as options and futures whose price is derived from the price of an underlying financial asset. , Hedging Activities, and Investments in Securities; and Auditing Interests in Trusts Held by a Third-Party Trustee and Reported at Fair Value. The Interpretations clarify that in circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or in which the auditor determines that the nature and extent of auditing procedures should include testing the measurement of investments in securities (or interests in a trust that holds investments in securities), simply receiving a confirmation from a third party (including a trustee) does not in and of itself constitute adequate audit evidence with respect to the valuation assertion. In addition, the Interpretations remind readers of management's responsibility for establishing an accounting and financial reporting process for determining fair value measurements. The Interpretations are posted on the AICPA's Web site at: www.aicpa.org/download/auditstd/announce/ Audit_Interpretations_Auditing_Fair_Value.pdf |
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