Fair values and audit fees: Evidence from asset revaluations in Australia

Yao, Dai Fei, Percy, Majella, & Hu, Fang (2013) Fair values and audit fees: Evidence from asset revaluations in Australia. In AFAANZ 2013 Conference, 4-7 July 2013, Perth, W.A. (Unpublished)


This paper examines the association between the level of audit fees paid and asset revaluations, one use of fair value accounting. This Australian study also investigates attributes of asset revaluations and the association with the level of audit fees paid. We find that firms choosing the revaluation model incur higher audit fees than those that chose the cost model; asset revaluations made by directors lead to the firm incurring higher audit fees than for those made by external independent appraisers; and revaluation of investment properties leads to lower audit fees. The findings suggest that asset revaluations can result in higher agency costs and audit fees vary with the reliability of the revaluations and the class of assets being revalued.

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ID Code: 95453
Item Type: Conference Paper
Refereed: Yes
Keywords: Asset revaluation, fair value, audit fees
Divisions: Current > QUT Faculties and Divisions > QUT Business School
Current > Schools > School of Accountancy
Deposited On: 10 May 2016 02:03
Last Modified: 14 May 2016 19:20

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