Research On Fair Value Audit

The concept of fair value has been massively introduced in our country's new accounting standards which were issued in 2006. The wide applications of this measurement attribute not merely cause striking to the work of accounting practice greatly but also challenge the audit work. How to audit the fair value parts of the financial report and evade the risk of auditing as much as possible is the question that the auditor has to face. As most scholars and auditors in practical level of China are not familiar with this difficult problem and the research on this area is quite few, it has great significance to use the foreign mature experience in fair value auditing as reference and make further studies on fair value audit from the theoretical and practical aspects.Using standardized methods with the actual situation in China and with reference to the advanced foreign experiences, this paper focused on the study of fair value audit's procedures and methods on a risk-oriented basis. Firstly, the paper makes detailed discussion on fair value's basic theory and its application in domestic and foreign accounting standards. It also introduced and compared fair value audit's developments and constitutions in home and abroad accounting standards and clarified the specific content of the fair value audit. Secondly, the paper discussed the fair value audit procedures and methods from the aspects of risk assessment, the experts use, the control testing and the measurement and disclosure's substantial tests, etc. Finally, based on the above discussion, the paper analyzed and pointed out the key problems in the theory and practice of fair value audit in our country. With a view to our fair value audit's faster and better development and providing valuable references, the paper brings forward detailed measurements such as speeding up the development of fair value accounting, improving the fair value audit's measurement and disclosure criteria, exploring the new ideas to raise the quality of fair value audits, making use of the computer technology, establishing a platform for effective market information, enhancing audit independence and training of high-quality audit personnel, etc. The innovation of this paper lies in the following:1. As the fair value measurement attributes with large-scale applications were just introduced in the areas of accounting and the fair value audit is in the initial phase, the paper carries out detailed and systematic studies on fair value audit's theory and its practice taking actual situation of China into consideration. It has improved our country's fair value audit mode.2.The paper makes in-depth analysis on our country's current fair value audit problems, brings forward feasible solutions and explores the new ideas to improve the fair value audit quality.