Abstract
The objective of the research is to analyze the auditors' perception regarding the measurement of the fair value of complex financial instruments level 3 in financial institutions. A questionnaire was applied with a sample of 62 independent auditors with technical qualification in financial institutions of large audit firms among partners, managers and senior auditors. The tools used were the Logistic Regression Test (LOGIT); The KruskalWallis test, and the matching analysis test. Subjectivity was an implicit characteristic in the process where the auditors remained conservative. However, differences of values were identified that resulted in immaterial issues and an indication of divergences in the measurement of accounting estimates. As a suggestion of improvement in the audit processes, a more robust academic formation and the inclusion of a financial expert in the teams were identified. Opinions diverge as to the partners and managers, where they pointed out more agreement with the issues than the managers.
Highlights
For almost forty years, fair value has been a standard for assessing assets and liabilities in financial reporting in the standards issued by the Financial Accounting Standard Board (FASB) in more than thirty pronouncements such as measurement of value
We elaborated 55 questions divided in the thematic poles on the deficiencies identified by the Public Company Accounting Oversight Board (PCAOB) in the audits of financial instruments evaluated at fair value
An issue that drew attention in the research was the causes and divergences of accounting estimates made between the auditors and the administration
Summary
The Statement of Financial Accounting Standards (SFAS) 157 - Fair Value Measurements resulted in the evaluation of assets in an unusual way and allowed the Fair Value Accounting (FVA) to be verified through evaluation techniques in the absence of a market. Advocates of the fair value such as (BARTH (1994)(2006); BARTH and LANDSMAN, (2010); PEYTCHEVA and WRIGHT, (2010); GLAVAN (2010) believe that this is the best representation of an entity’s financial position by providing greater transparency and relevance of information to its users. Objectors such as (SCHIPPER, (2003); BESTON, BROMWICH and WAGENHOFER, (2006) point.
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