What are some of the audit challenges associated with going into futures contracts?

Answer 1

what does your textbook say? it may offer a clue.

Answer 2

1. Contract markets and clearinghouses should perform periodic stress tests and use other appropriate monitoring tools to identify member Futures Commission Merchants (FCMs) that would be affected by large or unusual price moves in particular products, including options
2. Contract markets and clearinghouses should develop and maintain the ability to evaluate quickly the level of risk a member is exposed to on their markets, including the ability to use option pricing models
3. Contract markets and clearinghouses should develop and maintain programs to review settlement prices to determine if they are reasonable
4. The Division should work with the Joint Audit Committee to enhance the steps in the Joint Audit Program that address FCM risk management procedures
5. The Division should work with members of the Joint Audit Committee to clarify the relative roles and responsibilities of the DSRO and the exchange on which the relevant trading is taking place in the event of an FCM financial emergency
6. The Division should work with the Joint Audit Committee and derivatives clearing organizations to draft, for the approval of the Commission, a rule to make clear the rights of a clearinghouse to funds on deposit
7. The Division should draft a regulation codifying an FCM’s obligation to “top up” the funds it maintains in segregation for customers when a customer has a debit balance