(Solved): Planning for the audit of American Fields, Inc., revealed a commodity swap undertaken to hedge agai ...

Planning for the audit of American Fields, Inc., revealed a commodity swap undertaken to hedge against price swings for livestock. Which of the following procedures will the auditor most likely perform to determine that the commodity swap is properly stated at fair value in American Fields' financial statements? Test the data used to arrive at the fair value of the commodity swap contract. Test the operating effectiveness of controls over commodity swap contracts. Verify that the board of directors approved entering into the commodity swap contract. Confirm the terms of the commodity swap with the swap dealer.