investments in securities and derivitive instruments

Question 1

auditors objective

Answer 1

to obtain sufficient appropriate audit evidence regarding VALUATION of investments in securities and derivitive instruments

Question 2

this sas excludes investments using the ______ method

Answer 2

equity

Question 3

it may be appropriate to obtain estimates from _______, if the assumptions are highly subjective or models are subject to change

Answer 3

multiple sources

Question 4

determine whether the fair value decline is other than temporary

Answer 4

involves consideration of subjective matters

if fv is significantly below market value, and has been for a long time

the securiity has been downgraded by a rating agency

financial condition of the issuer has gotten worse

dividends have been reduced or interest payments have not been paid

Question 5

auditor should find out why the ______portion of a hedge

Answer 5

innefective

Question 6

clarified auditing standards are _______ and _____ as to applicable fin statement standards

Answer 6

principal based and neutral