The Integrated Audit Fees Study Of Fair Value

After the outbreak of the financial crisis, fair value measurement has beenhitherto unknown attention. In recent years, China’s regulators have issued "internalcontrol audit guidelines" requirements of listing Corporation financial statements andaudit of internal control audit the combination of "the integration of audit","Enterprise Accounting Standards No.XX--fair value measurement (Draft)" has beenrefined and improved on the fair value measurement. Through the literature study theintegration of audit, audit fees and the fair value of the study, found that the fair valuemeasurement and audit fees literatures from the empirical point of view, there is noresearch on fair value and the relationship between audit fees from the changes in fairvalue point of literature, at the same time, Research on the integration of audit fees inChina are concentrated in the study of integration audit the necessity and feasibility ofthe standard, there is no empirical literature, integrated audit so, has the certain theorysignificance and the practical significance of this research. Under this background,this paper studies the relevance of fair value accounting and audit fee profits apparentbased on the integration of audit, and before and after the implementation ofcorrelation degree of inquiry.In this paper,2009-2012China’s A shares all the disclosure of audit fees of thelisting Corporation as a research sample, using Simunic audit pricing model, withchanges in fair value, asset impairment loss characterization of fair valuemeasurement, fair value accounting, asset impairment loss and audit fees correlation,also change on the integration of audit relationship together before and after theimplementation of test. We propose the following four hypothesis: H1: fair valuemeasurement, changes in fair value gains and losses and financial statements auditfees are positively correlated; H2: fair value measurement, asset impairment lossesand financial statements audit fees are positively related; H3: the integration of audit,and financial statement audit, changes in fair value gains and losses and theintegration of audit charge relevant higher degree; H4: the integration of audit,compared with the financial statement audit, asset impairment loss and integration ofaudit fees related degree is higher, H5:fair value measurement,compared withnonconformityaudit,the changes in the fair valuerelated to the degree ofprofit andloss,loss of asset impairmentandthe integration of auditof higher then the sample ofempirical analysis, to verify the above assumptions. We have to sample descriptive statistical analysis, correlation test and multiplelinear regression analysis, found that the average cost of listing Corporation auditshowed a trend of increasing year by year, which is consistent with the recent yearsdomestic economic development. At the same time, through the correlation test, thereis no linear relationship between the variables, multivariate linear regression analysisof the next step and lay a good foundation. Multiple linear regression results are asfollows: the samples were divided into2009,2010,2011,2012and four year of theregression analysis, found that the changes in fair value, asset impairment losses andis positively related to audit fees, expectations and H1and H2; the samples weredivided into the integration of audit of2009-2010(stage1) and the integration ofaudit after2011-2012(stage2) of two stage regression analysis, found that theintegration of audit implementation, compared with the audit of financial statements,changes in fair value, asset impairment loss and integration of audit fees relateddegree is higher, the expected consistent with H3and H4; at the same time, we will bevariable changes in fair value gains and losses and the loss of asset impairmentadditive create a new variable, defined as the unrealized gains and losses, and thendivided the sample into the integration of audit of2009-2010(stage1) and theintegration of audit after2011-2012(stage2) of two stage regression analysis, foundthat did not achieve the significant positive correlation of income and audit fees, andthe integration of audit implementation, compared with the financial statements audit,unrealized gains or losses and integration of audit fees more related.Inaddition,we willbethe2011and2012data compared with nonconformity audit of asset impairment andintegrated auditmore,H5has been verified.In this paper, after the integration of audit the financial crisis as the background,the empirical testing in the integration of audit implementation before and after, theimpact of fair value accounting on audit fees. The study found: the integration of auditimplementation, unrealized gains and losses in fair value gains and impairment ofassets and is positively related to audit fees; the integration of audit implementation,influence degree of integration between audit fees and higher. Show the complexity ofaudit fees with fair value estimates and internal control and audit risk cost.