Problems And Countermeasures Of Fair Value Audit In China

When accounting producing, accounting information main concerned about the reliability of the information. As the changes in the economic environment and information environment, what the accounting information needs to solve with emphasis is the information relevance. So, to a certain extent,the introduction of fair value measurement methods becomes very essential. Along with the extensive use of the fair value measurement in our country's new accounting standards, financial reporting's confirmation, measurement, submiting and many other aspects request to ralate fair value. Fair value accounting era has created. However, in 2008, the world economics suffered heavy losses from the whole world's financial storm which created by the US's loan crisis. The widely use of the fair value measurement will challenge the traditional audit, because it not only caused a great impact on the accounting practice, but also greatly increases the difficulty of auditing and the risk of auditing. Using the fair value measurement demand auditors to use fair value audit.At present, for our country, according to the insufficient degree of market economy, the imperfect standards and the qualities of accountants and auditors, the use of fair value is property abused. All of these bring a certain degree of difficulties to the application of fair value. So, there is an urgent need to strengthen the fair value audit. China is lacking a system analysis and a in-depth study on the fair value auditing, auditors are unfamiliar with the fair value audit as well. Therefore, This article combined with risk-based audit theory and foreign countries' experience on fair value audit to analyse systemly on the fair value audit theory and practice. Our study will reducing our country's accounting information distortion, improving the quality of auditing and maintain our international economic interests. Above all,we can promote the growth of our national economy fastly and healthly.This article mainly uses the normative study methods and it is divided into five parts. The first part is introduction and it describes the research background, relevant literature reviews, research methods and basic frame, etc. The second part firstly introduces fair value including the meaning of fair value, the features of fair value, the methods to comfirm the fair value and the basic theory of fair value audit, then we can know the meaning, content, features and the the theoretical basis of the fair value audit. The third part summarized our country's present prominent problems on fair value audit. Fristly, no uniform standard of fair value audit.Secondly, it is difficult for auditor to appraise an objective evaluation of fair value audit. Thirdly, fair value measurement raises the risk of auditing. At last, fair value increase the time and cost of audit. Then we carry on a deep level analysis on these questions, summarized reasons such as theory and methods of fair value accounting is flawed, laws and regulations of fair value accounting have not improved, our CPA's professional ability is insufficient, and the auditing source for fair value is insufficient as well, etc. The fourth part summarizes the existing problems of fair value in this financial crisis and the enlightenment from foreign countries' advanced experience on fair value audit. Then we carry on inspirations such as consummate the rule of fair value audit as soon as possible, strengthen the supervision of fair value audit and make full use of the auditing computer technology. According to the reasons of existence problems on China's fair value audit and based on the experience and lessons. Part five proposes certain countermeasures for perfecting our country's fair value audit. Firstly, strengthen fair value accounting and audit standards development and reform the existing audit delegate pattern to create a legal environment for fair value auditing. Secondly, establish the market information database and information networks technology to build the fair value evaluation system on the market. Thirdly, improve the corporate governance structures and internal control to establish the perfect company interior government mechanism. Fourth, increase the auditor's professional competence and strengthen auditor's good faith and the moral education to train the high quality and multi-skill men for auditing profession. Fifth, strengthen cooperation between the public accounting firm and enhance the coupling of audit resources to set up the ideas of fair value audit sources.