Paper suggests key to improving fair value audits

BVWireIssue #190-3
July 25, 2018

fair value for financial reporting
business valuation profession, fair value, practice management

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.
Please let us know if you have any comments about this article or enhancements you would like to see.