These bar charts are visual representations of the pricing methods for Level 1 and Level 2 securities.

Question

Response

If, in combination with other risk assessment procedures, we identify a risk of material misstatement related to the classification of securities priced using an internal model as Level 2, what can we do to further investigate and obtain an understanding of the Companys process for valuing such securities? Note: Level 1 securities: exchange-traded equity securities and U.S. treasuries Level 2 securities: mortgage-backed securities, asset-backed securities, and corporate debt securities

Level 1 Stacked Bar Chart of Pricing Methodology and Level by Fair Value USD Level 1.00B 1 1.00B 0.80B Fair Value USD 90.60B 0.40B 0.20B 0.04B 0.00B Broker Quote Vendor Price Level 2 Stacked Bar Chart of Pricing Methodology and Level by Fair Value USD Level 5.93B 12 6.00B 4.00B 3.59B Fair Value USD 2.00B 0.00B 0.06B Broker Quote Internal Model Vendor Price