Description: Two anonymous 19th century Canadian paintings sold last Wednesday in London for a lot price of close to $1 million. This was over a dozen times Christie’s original estimate of what the lot might attract. A representative of Christies auctioneers was obviously “thrilled.”

Source: Globeandmail.com

Date:  April 1, 2015

Link: http://www.theglobeandmail.com/arts/art-and-architecture/paintings-netting-nearly-1-million-set-new-benchmark-in-canadian-art-sales/article23757063=

Discussion Points:

1) What are some of the challenges in valuing art?

2) What choices do institutions like museums and galleries have for disclosing their art holdings in their financial statements?

3) If you were an auditor of a client who had significant holdings of art, what might be some of the audit procedures you would employ to ensure the valuation of the art was accurate?