SAS 101 Section 328 Auditing Fair Value Measurements and Disclosures

The purpose of this section is to establish standards and provide guidance
on auditing fair value measurements and disclosures contained in financial
statements. In particular, this section addresses audit considerations relating
to the measurement and disclosure of assets, liabilities, and specific components
of equity presented or disclosed at fair value in financial statements.
Fair value measurements of assets, liabilities, and components of equity may
arise from both the initial recording of transactions and later changes in value.
Changes in fair value measurements that occur over time may be treated in
different ways under generally accepted accounting principles (GAAP). For example,
GAAP may require that some fair value changes be reflected in net
income and that other fair value changes be reflected in other comprehensive
income and equity.