Study On Earnings Management And Auditing Control Based On The Fair Value

Traditional accounting information compiled on the basis of historical cost measurement was criticized due to its lack of correlation and timeliness. The application of fair value accounting can improve the accounting information's correlation and timeliness to meet the policy makers'requirements. Therefore, it becomes a international accounting development trend to make fair value as the measurement basis and and gradually draws high attention in the field of accounting theory and practice. Fair value application scope extends gradually from financial tools to traditional assets and liabilities project. Fair value accounting becomes the key and hot topic of future international accounting studies.Start from January 1, 2007, our country's listed companies first use fair value as the measurement. Because of the defects fair value theory and imperfection of Chinese market development, meanwhile the fair value measurement improving the accounting information correlation, will it become the management authorities earnings management tools and will it be a"Double-edged sword"as the fair value's introduction? This thesis studies the fair value's influence on the earnings management and audit supervision mechanism of it from the earnings management aspect. On the basis of the previous studies, the article selects Shanghai&Shenzhen 2006-2009 listed companies as samples to make regression analysis for the fair value measurement effect on earnings management and audit control. Firstly makes normative research from the fair value theory influence on earnings management and audit risk, then makes empirical analysis for listed companies earnings management and audit supervision effect according to new accounting rules referred to multiple dimensions of fair value's using project.Through empirical research have reached the following conclusions:(1)The test results of this paper show that the influence of the fair value on accruals earnings management to be significant, while the influence of the fair value on earning management to be significant, and the trend is upward.(2)The results of Wilcoxon analysis showed that the control of audit on the earnings management is not effective. Then accouting information quality is decreased.