Research On The Auditing Issue Of Fair Value Estimate

In recent years,the status of fair value measurement has been pushed to a new height.Its application can reduce the degree of information asymmetry,external information users such as government departments or investors can be timely and fully aware of the real situation of public companies.Furthermore,it can reduce the risk of information and improve the effectiveness of accounting information.However,in the stage of market economy development,it is difficult to obtain the relevant quotation,and the fair value measurement is more dependent on the management's estimation of the model,assumptions and parameters.So the accounting information is more subjective and uncertain.This will undoubtedly bring new challenges to the w auditors.So this article,based on the current market environment and institutional environment,discuss the auditors how to reply the fair value estimates.Moreover,the article takes the 2015 annual audit of China Merchants Bank as a case.At present,there are audit problem of fair value estimates need to be solved.For example,the defect of market environment restricts the development of audit work.The audit evidence should be difficult to obtain.The auditing standards have some defects.The valuation mechanism cannot effectively play a significant role.In the last part,the author puts forward some suggestions on these problems.We look forward to the continuous improvement of the fair value measurement.In the end,auditing can make assurance on the finance report by ensure the quality of accounting information,and provide convenience for economic decision-making.