Duff & Phelps Alternate Asset Advisory experts discuss how the PCAOB's new audit standards impact the use of pricing services and broker quotes to estimate fair value. We share insights on how investors in alternative investments should prepare for the application of the new audit standards and we answer the following questions:
- Can auditors use broker quotes and pricing vendor data as audit evidence?
- What analysis should investment managers perform to provide auditable fair value estimates in accordance with the new audit standards?
- Are Level II investments really Level III?
- When are models needed to augment external broker quotes and pricing data?
- What is the relationship between investment position size and contemporaneous and actionable transactions?
- What changes to the valuation processes should be considered?
Duration: 56 minutes
- David Larsen, Managing Director, Duff & Phelps
- Jennifer Press, Managing Director, Duff & Phelps
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.