Approaches for Obtaining Audit Evidence at Fair Value Measurement
Purpose: The article provides a comparative analysis of several fair value measurement techniques contained in IFRS and US GAAP standards in order to select the valuation method of financial reporting elements that is most applicable to auditing. Design/Methodology/Approach: A study of the conceptual issues of valuation of accounting objects at fair value in order to select a valuation technique that allows to evaluate the asset or liability with maximum accuracy. Findings: The authors have developed a methodology for auditors to select the most accurate estimates, considering prices prevailing only in observed markets. Practical Implications: The application of the developed methodology for determining fair value can be used by auditors to form a reliable professional judgment in obtaining audit evidence. Originality/Value: The authors proposed a new audit algorithm for the validity of the valuation of assets and liabilities at fair value, based on obtaining audit evidence to determine whether the estimates in the financial statements are reasonable in relation to the applicable financial reporting framework or if they are distorted.