www.aicpa.org/download/auditstd/announce/ audit_interpretations_auditing_fair_value.pdf.The AICPA's Auditing Standards Board In the United States, the Auditing Standards Board (ASB) is the senior technical committee designated by the American Institute of Certified Public Accountants (AICPA) to issue auditing, attestation, and quality control statements, standards and guidance to certified public 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. : "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" (www. aicpa.org/download/auditstd/announce/ audit_interpretations_auditing_fair_value. pdf; sec Official Releases, page 121). The interpretations clarify that when an auditor determines that the nature and extent of auditing procedures should include testing the measurement of investments in securities, simply receiving a confirmation from a third party does not constitute adequate audit evidence with respect to the valuation assertion. The interpretations also reiterate re·it·er·ate tr.v. re·it·er·at·ed, re·it·er·at·ing, re·it·er·ates To say or do again or repeatedly. See Synonyms at repeat. re·it management's responsibility for establishing an accounting and financial reporting process for determining fair value measurements. |
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