CHALLENGES INCURRED IN THE AUDITING OF FAIR VALUE MEASUREMENTS

Abstract

The purpose of the auditors' work is to establish confidence between the producers and users of accounting information. Thus, auditors help protect the interests of different categories of beneficiaries of accounting information when they make economic decisions. The prevalence of fair values in the financial statements as their inherent measurement uncertainty has increased dramatically in recent years and is recognized as representing a significant problem for regulators. In these circumstances we ask which are the difficulties encountered by auditors in auditing fair values, what kinds of deficiencies they find within auditing and whether the complexity of measurements of fair value jeopardizes the ability of auditors to give a highly secure opinion.

Keywords

• audit, evaluation, fair value