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| Author | Suzanne Smit | | Title | The influence of fair value accounting on audit risk : an empirical study. |
| Supervisors | I. Goncharov, S. Bissessur |
| Year | 2008 |
| Faculty | Faculty of Economics and Business |
| Abstract | The move to International Accounting Standards (IAS) accounting in 2005 for public
firms within the EU resulted in more enterprises developing and reporting fair value
measures (Danbolt and Rees, 2007). Due to these new standards, there is a change to
an increased use of fair value accounting. The use of fair value accounting by firms
might be a risk for auditors, especially the second type of fair value accounting
(ambiguous). The purpose of this thesis is to develop a model of auditing, deduced
from the model used in Chaney et al. (2004), to analyze the influence of the type of
fair value accounting used (unambiguous and ambiguous) on audit risk. The goal is to
use this model as a tool to determine whether audit fees are lower (higher) for firms
that use unambiguous (ambiguous) fair value accounting, than for firms that use
(unambiguous) ambiguous fair value accounting. The findings show that audit fees
vary (positively) with the type of fair value accounting used. Further, the results
indicate that audit risk varies with the type of fair value accounting used by the firms
in my sample. |
| Document type | scriptie master |
| Download paper | |
Use this url to link to this page: http://dare.uva.nl/en/scriptie/287901
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