Research On The Relevant Control Activities Over The Process For Fair Value Measurements And Disclosures

Resent years, the studies on fair value auditing both at home and aboard have created a term——the process for fair value measurements and disclosures and relevant control activities, and strengthened the increasing demands for relevant control activities. Meantimes,the relevant study of internal control also has indicated the necessity of systematic researches on relevant control activities.The thesis has four chapers. By analyzing internal control as a theoretical tool for accounting and auditing, it proposes tentative theoretical basics for relevant control activities in terms of fair value accounting and auditing. In addition, it advances some designs of relevant control activities from the aspects of right-responsibility allocation, fair value option, fair value measurements, fair value disclosures, and with the analyses of designing costs, benefits and forms. In conclusion, the thesis offers a series of support on the implementation of relevant control activities.The thesis states that, the effective internal control is a strong support of the reliability of financial reports and the implementation of the assessment of the risk of material misstatement in the course of auditing. However, the impacts of the process for fair value measurements and disclosures on the relevant control activities and the enhancement of risks of material misstatement by the process for fair value measurements and disclosures have shown that the existing control activities can not give a reasonable assurance of the reliability of fair value measurements and disclosures, fail to facilitate the assessment of risks of material misstatement.The thesis innovatively states that, for improving existing control activities, the relevant control activities designing should be based on the internal control over financial reporting and the enterprise risk management. The control subject in relevant control activities is the process for fair value measurements and disclosures, while the control objective is the reasonable assurance of the reliability of fair value measurements and disclosures. The forms of relevant control activities designing should be of principle and flexibility. The designing benefits will be, in the end, greater than designing costs. All the designs of control activities prove to be feasible.