The audit firm's valuation specialist would likely be brought in to assist in the audit of fair value measurements at an entity when the following is present:
A. The entity is a new audit client.
B. Significant uncertainty exists is key inputs to the entity's valuation models.
C. The entity has a financial instrument with a Level 2 input.
D. The entity owns a large and diverse portfolio of publicly traded stock.
Answer: B. Significant uncertainty exists in key inputs to the entity's valuation models.