Financial Instrument Coverage Checklist for Audit & Reporting Teams
One of the most common challenges in valuation support arises when pricing services lack experience with certain types of financial instruments. Not all assets behave the same way, and valuation approaches that work for liquid securities may not be appropriate for less liquid or more complex instruments.
Understanding instrument coverage is an important part of selecting valuation support.
Why Coverage Matters
Audit and reporting teams often work across diverse portfolios that include a mix of traditional and complex instruments. Gaps in coverage can lead to:
Inconsistent valuation approaches
Additional internal work to supplement pricing
Increased audit risk when methodologies are unclear
A pricing partner with broad instrument coverage helps ensure consistency across reporting periods and asset classes.
Common Instrument Categories That Require Specialized Experience
Depending on the engagement, valuation support may be needed for instruments such as:
Loans and fixed-income securities, including private and structured loans
Asset-backed and mortgage-backed securities
Municipal and government-related instruments
Private placements and less liquid debt
Alternative investments, including private equity interests
Derivatives and structured products
Each category presents different challenges related to liquidity, inputs, and valuation methodology.
What to Look For in a Valuation Partner
Strong valuation support typically includes:
Demonstrated experience pricing a wide range of instruments
Access to relevant market data and observations
Methodologies tailored to instrument type and liquidity
Documentation that supports audit and regulatory review
Harvest routinely supports pricing and valuation across a broad spectrum of financial instruments, including those that are difficult to price or require additional analysis. This breadth of experience allows reporting teams to rely on consistent, well-supported valuations across their portfolios.
How These Resources Fit Together
Independent pricing and instrument coverage are closely connected. Independence ensures objectivity, while broad coverage ensures valuations are grounded in appropriate expertise. Together, they support stronger audit outcomes, clearer documentation, and more efficient reporting processes.
These principles guide how Harvest supports audit firms, financial institutions, and reporting teams - particularly during periods of increased volume and scrutiny.
