My auditing firm is auditing the asset account Investments. Included in Investments is a material investment

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My auditing firm is auditing the asset account “Investments”. Included in “Investments” is a material investment – Investment in BBw.inc. You learn that this company is a non-public company and my client, company A, has valued this investment at its fair value. The manager tells you that no one on the engagement team knows how to audit this asset. How is this concerning to the audit and in which way? Is there any rules talking about this situation?

Posted Date: Dec 04, 2021 03:31 PM

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My auditing firm is auditing the asset account Investments. Included in Investments is a material investment

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The item Investment is a small portion in the balance sheet The auditors usually ... View the full answer

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