To contribute to the PCAOB project on auditing fair value measurements (FVMs), we synthesize relevant academic literature to offer insights, conclusions, and future research directions for auditors, standard‐setters, and academics focusing on auditing FVMs. We structure our synthesis along two dimensions: (1) an emphasis on the auditor's need to understand how FVMs are prepared, and (2) the audit steps and procedures necessary to verify and attest to FVMs, including an awareness of the potential biases inherent in auditing FVMs. Drawing primarily from the judgment and decision‐making literature, we highlight a number of potential biases and limitations in the preparation and audit of FVMs. Additionally, we note that the specialized valuation knowledge necessary to effectively audit FVMs will be difficult for auditors to gain and maintain.
Skip Nav Destination
Research Article| September 01 2006
Auditing Fair Value Measurements: A Synthesis of Relevant Research
Roger D. Martin, Assistant Professor;
Jay S. Rich, Associate Professor;
Accounting Horizons (2006) 20 (3): 287–303.
- Views Icon Views
- Share Icon Share
- Search Site
Roger D. Martin, Jay S. Rich, T. Jeffrey Wilks; Auditing Fair Value Measurements: A Synthesis of Relevant Research. Accounting Horizons 1 September 2006; 20 (3): 287–303. doi: https://doi.org/10.2308/acch.2006.20.3.287
Download citation file: