We use a third party to provide security pricing for the available for sale securities. The 3rd party is a reputable, established, regional brokerage and we have a clear SAS70 on them. The SAS70 indicates the controls over market pricing are in place & functioning. Our external auditors have recommended that management review the monthly pricing reports for proper pricing sources. Management contends that they don't have the expertise to question the sources and we should instead fall back on the SAS70 for our comfort level with pricing. Has anyone else encountered this and, if so, what does management do to ensure the pricing sources are proper? Thanks!