Fair Value Of Audit Analysis

The promulgation of accounting standards comprehensively introduced fair value, which impact tremendously on our accounting and auditing profession. After the implementation guidelines, registered accountants need fair value on financial report audit section, and this area is difficult audit, audit of the high risk and relatively unfamiliar, and thus the studies of the audit on the fair value and research work has been put on the agenda. Introduced one after another, financial crisis broke out in the third quarter of 2008 began in the U.S., which affected countries around the world and nibble in the business community. Financial crisis exposed the way in increasing the fair value measurement of financial institutions, asset losses and other deficiencies have drawn as to whether to adhere to this way of measuring and caused the broad debate. China in this crisis, the impact of the financial markets are relatively small in scope, and not a direct application but convergence with international standards, insisted on fair value measurement method continue to apply. However, we should learn from abroad fair value measurement and the experiences of audit and lessons in theory and practice of auditing fair value measurements on the active exploration and research, for better services for economic development.In this paper, standardized methods using to study fair value method and audit changes in financial crisis at home and abroad, combined with China's specific conditions, the audit of the fair value conducted on a more comprehensive and systematic study. Article is divided into five parts, the first part is introduction, mainly introduces the research background, significance, at home and abroad on the audit of fair value results and the idea of writing this article; second part is a description of the basic theory of fair value, described the concept of fair value, recognition method, application in China and the controversy of its financial crisis; The third part is an overview of the fair value of the audit, according to the history of the fair value of the audit, combined with state of the nation shows the significance of implementation of the audit of fair value, the audit described the meaning of fair value, content and procedures; the fourth part of the specific descriptions of our practical problems faced by the audit of the fair value; fifth is recommendations to these specific issues in order to perfect the fair value of audit.After studied, this article has four points:1. As an advanced method, faire value could issue the "true and fair" financial information, that is present value of future economic benefit or market value which are equal in an effective market. Compared with historical cost, the information is more relevance and reliability. It is to say, the basic principle of faire value is consistent with Risk-oriented audit, which brought a thoroughly change in accounting theory system, public finance reporting users will believe the true presentation in a deeper degree, to auditors, it will reduce the audit task. So even after the financial crisis, the fair value methods not only won't cancel will also have the further development.2. Based on many accounting valuation, faire value involved subjective estimation of accounting personnel, many listed companies adopt this method in order to manipulate finance data. Under this measurement method, auditors are hard to get appropriate audit evidence, leading a increasing audit risk. So there is a urgent demand of studying in faire value audit.3. The purpose of faire value audit is to deal with the truth and faire reorganization of asset liability and equity, transaction and events, whether they are compliance or not. In the investment real estate, intangible assets, assets impairment, debt restructuring and the exchange of non-monetary assets and financial instruments, the merger of enterprises and the association party transactions, faire value audit will pay more attention to these items. Risk assessment and appropriation of evaluation of fair value measurement, and sufficiency of disclosure, using the experts work, substantive test is the key aspect in audit work.4. Studying and adopt international experience and lessons selectively will save a lot of resource to develop the fair value audit in China. In my paper, through comparing home and abroad current situation in faire value, I point out the current problems existing in the application fair value, and put forward several suggestions to strengthen and improve the fair value audit in China.