![]() The novelty of the study lies in introducing principle-based standards requirements of FVD to test the relationship. Originality/value - This study contributes to the theory by demonstrating the impact of the auditor industry expertise on post-implementation costs of FVD. The current findings are generalisable to other countries, including the Middle East and North Africa, and are particularly beneficial for those countries which have adopted the fair value model. Additionally, the results provide a foundation for policymakers and regulators to introduce and update fair value auditing practices. These insights present a valuable input for the development of FVD policies and practices as well as providing guidance for updating auditor prices. ![]() Practical implications - The results provide valuable insights for policymakers into challenges of auditing FVD. The results are robust after controlling the endogeneity of auditor self-selection. ![]() Level 1 assets were found to be only moderated by both scenarios positively (negatively) for MS (PS) experts. This association varied across the fair value inputs. Findings - The results suggest that the association between the proportion of fair-valued assets and audit fees is strengthened (weakened) when the client hires specialist auditors identified by MS (PS). The paper employs the Ordinary Least Squares regression to test the association between the proportion of fair-valued assets (using fair value hierarchy inputs) and audit fees. Two competing theoretical approaches of IS proxied by audit fee-based measures were employed: firstly, the product differentiation approach measured using Market Share-based (MS) measure and secondly, the shared efficiency approach measured using Portfolio Share-based (PS) measure. Design/methodology/approach - The study uses 1,470 firm-year observations for the period 2005–2018 and is focused on Jordanian financial firms. Purpose - This paper investigates the application of the product differentiation and shared efficiency approaches to understand the impact of the auditor industry specialisation (IS) on audit fees in relation to Fair Value Disclosures (FVD).
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |