The Impact Of Fair Value Measurement On Audit Opinion

In 2014,China issued the "Accounting Standards for Business Enterprises No.39-Fair Value Measurement".The use of fair value measurement can,on the one hand,overcome the shortcomings that historical cost measurement cannot fairly reflect the true value of corporate assets and liabilities,better reflect the financial status and operating results of the enterprise,enhance the correlation between accounting information and user needs,and adapt to the socialist market Economic development and changes improve the quality of accounting information;on the other hand,fair value measurement also depends on the valuation model and the professional judgment of accounting personnel,which is easy to cause artificial manipulation of accounting information,resulting in the reliability of accounting information cannot be guaranteed.Can the widespread use of fair value improve the usefulness of accounting information,and what impact does it have on the audit opinion issued? In order to find answers to these questions,this article uses listed companies as samples to verify the relationship between fair value measurement and audit opinion.This article selects 2014-2018 Shanghai and Shenzhen A-share listed companies as a sample,using a variety of methods: descriptive statistics,correlation analysis,probit model regression,etc.,examining the nature of different property rights,different regions,and different stock market cycles.The correlation between the use of the company’s fair value measurement and the audit opinion.The study found that:(1)The ratio of fair value assets and liabilities and audit opinion is negatively correlated,that is,the wider the scope of fair value measurement,the more likely to be issued a standard audit opinion;the degree of fair value change profit and loss fluctuations and the audit opinion are positively correlated,That is,the greater the degree of fluctuation in the fair value changeof the enterprise,the greater the risk of the enterprise,and the greater the probability of being issued a non-standard audit opinion;the degree of asset impairment loss fluctuation and the audit opinion are significantly positively related,that is,the more the company’s assets are impaired,the easier it is for listed companies to be issued with non-standard audit opinions.(2)In the research and analysis of the nature of property rights division,the correlation between the degree of fair value measurement and the audit opinion,the significance of state-owned enterprises is not higher than that of non-state-owned enterprises.(3)The correlation between the use of fair value measurement of listed companies in the eastern region and the audit opinion is not significantly higher than that in the central and western regions.(4)The significance of the relationship between the use of fair value measurement of listed companies and audit opinions during the2016-2018 stock market decline cycle is higher than the 2014-2015 stock market rise cycle.(5)The degree of fluctuation of asset impairment losses of listed companies with different property rights(state-owned enterprises and non-state-owned enterprises),different regions(eastern and mid-western),and different stock market cycles(during the stock market rise cycle and stock market decline cycle)is smaller,it shows that the less impairment of corporate assets,the more stable the company’s operations and the greater the likelihood that the company will be issued with standard audit opinions.The main contributions of this article are: First,it expands the measurement method of fair value.From the three aspects of fair value measured assets and liabilities to total assets(measure the fair value measurement range),the fluctuation degree of fair value changes in profit and loss,and the fluctuation degree of asset value loss,the application of fair value measurement was comprehensively displayed and the impact of fair value measurement on the audit opinion was comprehensively studied.The second is an in-depth analysis of the impact of fair value measurement on audit opinions in various specific situations.The relationship between the fair value measurement and audit opinions of listed companies in different property rights(state-owned enterprises and non-state-owned enterprises),different regional distributions(eastern and central andwestern regions),and different stock market cycles(during stock market rise cycles and stock market fall cycles)were studied separately,the literature on fair value affecting audit opinions was enriched.The third is to provide empirical evidence for the implementation effect of China ’s fair value-related accounting standards,and provide a reference basis for the further revision and improvement of the standards.