Fair Value Measurements, Auditor Industry Expertise, and Audit Fees─Evidence from the Banking Industry in Taiwan

• Main Authors: Ching-Heng Chiu, 邱敬衡
• Other Authors: Hsiu-Mei Liao
• Format: Others
• Language: zh-TW
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/p55ekr

碩士 === 銘傳大學 === 會計學系碩士班 === 100 === International adoption of IFRS has become the mainstream. To enhance the competitiveness between Taiwan and other countries, Taiwan adopt IFRS to prepare of financial statements since 2013. Because IFRS conversion is a complex process, enterprises paying the accountant’s audit fee is expected to increase significantly when enterprise import IFRS. In addition, fair value accounting involves a lot of judgments and estimates. Thus, the auditors with industry specialization is even more important. However, in the past, research on audit fees often excluded the banking and financial industry. Therefore, our study conducts an empirical analysis of the relationship among fair value measurements, industry specialist and audit fees of Taiwan banking industry, and we have obtainted the following findings. First, the auditors charge higher audit fees when clients have higher fair value of assets and liabilities. Second, we find that bank specialist has provides differential product so that they could charge a fee premium. Finally, we find that bank specialist auditors charge clients less for auditing fair value of liabilities, consistent with cost efficiencies passed over to clients, but fair value of assets.