How to increase its preciseness when there are no published quotes?

I recently used an answer to the case study below that I found on Chegg. I am being asked to expand Show more I recently used an answer to the case study below that I found on Chegg. I am being asked to expand on the comment used. Can you please assist with formulating an answer back? Im looking for a striaght forward answer 2-3 sentences please. Case study: Salvador Corporation made an investment in Letter.com Inc. in exchange for 100000 options to purchase Letter.coms stock at $20 per share. Since the stock options are not marketable Salvadors management has this derivative valued by a security appraiser. The appraiser uses an option-pricing model to determine the fair value of the derivative for the financial statements. Describe how you would audit the valuation of the stock options. Chegg Answer: The auditor should access the reasonableness and appropriateness of the model and also evaluate the reasonableness of the assumption used in the valuation model. Follow up question: Can you please discuss further the quote cited by you: The auditor should assess the reasonableness and appropriateness of the model and also evaluate the reasonableness of the assumption used in the valuation model in light of many assumptions in valuation of not marketable stock options. How to increase its preciseness when there are no published quotes? Show less

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