Research On The Impact Of Fair Value Stratification On Audit Fees

Since the establishment of the Shanghai Stock Exchange and the Shenzhen Stock Exchange in the 1990 s,the Chinese securities market system has become more standardized and improved,forming a multi-level capital market system,which has derived complex financial instruments such as futures options.The scope and impact of the measurement of fair value have been further expanded,and its position in the company's financial report has become increasingly prominent.Leading,including practitioners,policy makers,relevant government agencies and academia,to concern and controversy the advantages and disadvantages of the fair value measurement applications.Through the arguments of scholars and practitioners,fair value measurement has withstood the test of time and has become an accounting measurement method recognized by all parties.Now,the core of all parties' concerns is the economic consequences of their measurement.Specifically,the impact of the relevant information on fair value measurement on the securities market is due to the fact that there are few related studies,and there are differences in research results due to differences in business environment,sample selection and model setting.Become one of the focuses of scholars' research.This paper draws on Simunic's audit pricing model,and uses the Shanghai and Shenzhen 300 Index listed companies that disclose the fair value stratified measurement information in 2010-2017 as a research sample to study the relationship between fair value stratification and audit fees and the company of the audited entity.The impact of certainty on the relationship between the two.Specifically,the relationship between the total assets and liabilities of fair value measurement and audit fees at different levels is studied.Secondly,what is the impact of the first level of fair value measurement and the total assets and liabilities of the second and third levels of fair value on audit fees? Finally,the regulatory effect of the uncertainty of the audited unit company(market level uncertainty and company level uncertainty)on the relationship between the total assets and liabilities measured by the fair value stratification and the audit fees is studied.Descriptive statistics,correlation analysis and least squares analysis were performed on the study samples,and the robustness of the results of this study was tested.The empirical research found that:(1)The total amount of assets and liabilitiesmeasured by tiered fair value increased,and the audit fees increased.(2)Compared with the first-level fair value measurement,the second-third fair value measurement of total assets and liabilities has a more significant impact on audit fees.(3)The higher the uncertainty of the company level of the audited entity,the greater the impact of the total assets and liabilities measured at different levels of fair value on the audit fees.The following suggestions are put forward for the research results of this paper:(1)Optimize the part of the auditing standards on the judgment of fair value;(2)Strengthen the environmental monitoring of the audited entity,especially the specific uncertainty at the company level of the audited entity.(3)Improve the professional knowledge and skills of practitioners.