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Fair Value Measurements, Nathan Hatch Cannon

2013

This dissertation consists of two empirical studies that investigate fair value measurement issues currently facing the accounting profession--one from the perspective of the auditor, and the other from the perspective of the financial statement user. The results of each study are described below.

This first study examines experienced auditors' descriptions of specific client experiences in which auditing fair value measurements (FVMs) was particularly challenging. Based on a field survey of high-level engagement team personnel from several large firms, we identify a number of key issues currently facing the profession in auditing FVMs. First, when asked about challenges faced in auditing …

The Effect Of Increased Audit Disclosure On Investors' Perceptions Of Management, Auditors, And Financial Reporting: An Experimental Investigation, Marcus M. Doxey

Theses and Dissertations--Accountancy

Standard setters recently proposed increasing audit disclosures and reporting. Two experiments examine the effects of auditor-provided disclosures on financial statement users’ perceptions of auditor independence, management credibility, reporting quality, materiality, and investment decisions. In the first experiment, I manipulate auditor agreement with management’s estimates and whether the estimates are incentive-consistent for management. I find that users view auditors as more (less) independent when they agree (disagree) with management, given an unqualified opinion. I also find that users are able to identify management bias using audit disclosures, and that the disclosures are value-relevant. In the second experiment, I provide users with …