Study On The Correlation Between Fair Value And Audit Fees

The development of economic and social is so rapid,and the innovation of financial tools is so fast,so the using of historical cost measurement is not very appropriate in some areas(such as some areas where the derivative financial instruments are widely used).Therefore,the fair value measurement,the most relevant measurement attribute of financial instruments,has applied more and more extensively.However,there are a lot of uncertainty in the measurement of fair value,and the pros and cons of its continuous use has become the focus of controversy and concern of practitioners,scholars,policy makers and regulators.IASB and FASB issued IFRS13 “International financial reporting standards No.13 — fair value measurement” in May,2011.The ministry of finance in our country issued “The accounting standards for enterprises No.39—fair value measurement” on January 28,2014.The fair value promulgated as a separate standards,which refined and improved standards of the fair value measurement.The uncertainty of fair value may affect the audit fees from different aspects.However,the document literature which studies fair value measurement and audit fees from the empirical perspective is relatively small.The literature on the economic consequences of fair value research in China are mostly concentrated in the normative research,so there is some necessity to add the literature of studying fair value research from the empirical perspective.Therefore,this article has certain significance.This article,based on the most classic Simunic audit pricing model,has been comprehensive improved,which studied the A-share listed companies in Shanghai and Shenzhen disclosed audit fees from 2007 to 2015 to explore its correlation with audit fees problems from all different angles of the fair value of information,including financial assets and financial liabilities measured by the fair value,financial assets measured by different levels on fair value measurement,variable profit and loss of fair value and other comprehensive income available for sale on changes in fair value gains and losses.Then the paper has carried on the descriptive statistical analysis to study sample,correlation analysis,multiple linear regression analysis and robustness testing.According to the empirical studies,we have found that they have a significant influence on audit fees,including financial assets and financial liabilities measured bythe fair value,financial assets measured by different levels on fair value measurement,variable profit and loss of fair value and other comprehensive income available for sale on changes in fair value gains and losses.And the fair value hierarchy theory has not been confirmed because of the lack of the third level samples.This paper puts forward related suggestions to perfect the fair value audit in our country after analyzing the causes of the conclusion.