www.aicpa.org/download/auditstd/announce/ audit_interpretations_auditing_fair_value.pdf.

The AICPA's Auditing Standards Board issued two interpretations of statements on auditing standards: "Auditing Derivative Instruments, 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 management's responsibility for establishing an accounting and financial reporting process for determining fair value measurements.