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3.0 Credits

Entities may have more complex investments, such as non-readily marketable securities that trade in an inactive market or use unobservable inputs for fair value determination. This module discusses the key considerations when auditing common complex investment types.


  • Discuss types of non-readily marketable securities
  • Describe fair value modeling techniques for Level 3 assets
  • Explain the requirements when using the work of a specialist in auditing investments
  • Discuss using Service Organization Control Reports as audit evidence
  • Describe fair value presentation and disclosure for complex investments

Major Topics

  • The fair value measurement process, including non-readily marketable securities
  • Auditing fair value measurement and disclosure, including alternative investments and complex derivatives
  • Using a specialist for fair value determination, including Service Organization Control Report considerations
  • Example accounting for complex derivatives, such as put options and embedded derivatives
  • Fair value hierarchy considerations for disclosures related to non-readily marketable investments

Designed For

Accountants who account for or audit more complex or non-readily marketable securities


Experience on complex audit engagements