{"id":17391,"date":"2023-09-06T10:36:05","date_gmt":"2023-09-06T07:06:05","guid":{"rendered":"https:\/\/bilangozareshgar.ir\/the-international-standard-of-financial-reporting-and-the-risk-of-non-detection-of-the-audit-part-two\/"},"modified":"2023-09-06T10:36:05","modified_gmt":"2023-09-06T07:06:05","slug":"the-international-standard-of-financial-reporting-and-the-risk-of-non-detection-of-the-audit-part-two","status":"publish","type":"post","link":"https:\/\/bilangozareshgar.ir\/en\/the-international-standard-of-financial-reporting-and-the-risk-of-non-detection-of-the-audit-part-two\/","title":{"rendered":"The international standard of financial reporting and the risk of non-detection of the audit, part two"},"content":{"rendered":"

[vc_row][vc_column][vc_column_text css=”.vc_custom_1693808650664{background-image: url(https:\/\/bilangozareshgar.com\/wp-content\/uploads\/2023\/08\/زیر-متن_prev_ui-300×181-1.png?id=16893) !important;background-position: center !important;background-repeat: no-repeat !important;background-size: contain !important;}”]<\/p>\n

The international standard of financial reporting and the risk of non-detection of the audit part two:<\/strong><\/h3>\n
Non-discovery of the second part of the audit, we want to discuss in several parts<\/p>\n
2-<\/strong> Measurement based on fair values<\/strong><\/p>\n
From the basic point of view of international financial reporting standards<\/a>, the emphasis is on fair values.<\/p>\n
These standards intend to replace the use of fair values with the historical cost basis.<\/p>\n
International Accounting Standards No. 16 (IAS 16)<\/p>\n
It allows the use of fair values for property, machinery and equipment.<\/p>\n
According to this standard, revaluation of assets to fair values is required.<\/p>\n
International Accounting Standards<\/a> No. 38 (IAS 38)<\/p>\n
requires revaluation of intangible assets to fair values.<\/p>\n
International Accounting Standards No. (IAS 39)<\/p>\n
39<\/p>\n
Requires the use of fair values for investments other than loans, accounts receivable, held-to-maturity securities, and certain items.<\/p>\n
In International Standards No. 3 (IFRS 3)<\/p>\n
Under the heading, “Business Combinations”, it allows the recognition of contingent assets at fair values when they are reasonably and reasonably estimable.<\/p>\n
An employee of the Financial Accounting Standards Board named Johnson (2005) states that the said board has adopted the extensive use of fair values.<\/p>\n
Because he believes that the information prepared based on it is more relevant for investors and creditors than historical cost information.<\/p>\n
Such a measure not only better reflects the current financial situation of the reporting entity.<\/p>\n
Rather, it facilitates the evaluation of its past performance and future prospects.<\/p>\n
The findings of Gassen and Shoder (2010) show that the fair values obtained based on active market information are useful in decision-making, but when they are not useful in decision-making, they are estimated based on alternative mathematical models.<\/p>\n
From the perspective of financial reporting, the issue of measuring and disclosing fair value information is very important.<\/p>\n
Auditors need to understand accounting rules and procedures related to fair values, including information disclosure, and express appropriate considerations regarding their application.<\/p>\n
Recent experiences show crises and problems in financial markets.<\/p>\n
which results from evaluating financial instruments based on fair values when market information is not available or it is difficult to obtain sufficient information.<\/p>\n
The following issues are important to preparers and auditors regarding accounting estimates based on fair values:<\/p>\n
Accounting estimates of fair value are stated in terms of the current transaction value or the existing conditions of an item in the financial statements on the measurement date.<\/p>\n
The need to unify judgments about significant assumptions that may be made by others such as experts employed by the company or auditors.<\/p>\n
Availability of fair value information and reliability of that information.<\/p>\n
_ Selection and appropriateness of fair value estimation models and techniques<\/p>\n
– The need for appropriate disclosure of information in financial statements about measurement models and uncertainties, especially when there are no active markets (Audit and Assurance Standards Board, 2008)<\/p>\n
In the current situation, obtaining relevant and reliable information about fair values is one of the most important challenges faced by financial information providers and, accordingly, auditors.<\/p>\n
The nature and reliability of the information available to management to support the accounting estimates made.<\/p>\n
Based on fair values, it varies greatly, which affects the degree of uncertainty of estimates based on fair values.<\/p>\n
Market prices will not be available when there are no active markets.<\/p>\n
Therefore, estimates should be based on other information.<\/p>\n
Like using models, some of the inputs of these models are invisible.<\/p>\n
Therefore, the degree of uncertainty has increased and affects the risk of significant distortion of financial information by the employer.[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n<\/body><\/html>\n<\/div>","protected":false},"excerpt":{"rendered":"
[vc_row][vc_column][vc_column_text css=”.vc_custom_1693808650664{background-image: url(https:\/\/bilangozareshgar.com\/wp-content\/uploads\/2023\/08\/زیر-متن_prev_ui-300×181-1.png?id=16893) !important;background-position: center !important;background-repeat: no-repeat !important;background-size: contain !important;}”] The international standard of financial reporting and the risk of […]<\/p>\n","protected":false},"author":20,"featured_media":17325,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"episode_type":"","audio_file":"","podmotor_file_id":"","podmotor_episode_id":"","cover_image":"","cover_image_id":"","duration":"","filesize":"","filesize_raw":"","date_recorded":"","explicit":"","block":"","itunes_episode_number":"","itunes_title":"","itunes_season_number":"","itunes_episode_type":"","yasr_overall_rating":0,"yasr_post_is_review":"","yasr_auto_insert_disabled":"","yasr_review_type":"","footnotes":""},"categories":[2936,4751,4549],"tags":[],"class_list":["post-17391","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-audit","category-fraud","category-risk"],"acf":[],"yasr_visitor_votes":{"stars_attributes":{"read_only":false,"span_bottom":false},"number_of_votes":0,"sum_votes":0},"_links":{"self":[{"href":"https:\/\/bilangozareshgar.ir\/en\/wp-json\/wp\/v2\/posts\/17391","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bilangozareshgar.ir\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bilangozareshgar.ir\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bilangozareshgar.ir\/en\/wp-json\/wp\/v2\/users\/20"}],"replies":[{"embeddable":true,"href":"https:\/\/bilangozareshgar.ir\/en\/wp-json\/wp\/v2\/comments?post=17391"}],"version-history":[{"count":0,"href":"https:\/\/bilangozareshgar.ir\/en\/wp-json\/wp\/v2\/posts\/17391\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bilangozareshgar.ir\/en\/wp-json\/wp\/v2\/media\/17325"}],"wp:attachment":[{"href":"https:\/\/bilangozareshgar.ir\/en\/wp-json\/wp\/v2\/media?parent=17391"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bilangozareshgar.ir\/en\/wp-json\/wp\/v2\/categories?post=17391"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bilangozareshgar.ir\/en\/wp-json\/wp\/v2\/tags?post=17391"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}