Auditor experience—not guidance from regulators—will lead to higher audit quality of fair value measurements, according to a new paper, “Auditor Fair Value Expertise.” Researchers examined fair value-related restatements and comment letters to see what can be done about PCAOB inspections that repeatedly uncover deficiencies in audits of fair value estimates. The paper’s authors are professors/assistant professors at Northeastern University and Bentley University.
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