Fair Value and the Missing Correspondence Between Accounting and Auditing

Kim Klarskov Jeppesen, Dennis van Liempd

Publikation: KonferencebidragPaperForskningpeer review


The paper outlines the history of accounting and auditing thought, demonstrating how auditing has had an isomorphic relationship with accounting throughout most of its history. We focus this history on two turning points. The first is the turn from reporting the truth to reporting in accordance with Generally Accepted Accounting Principles, which occurred in the 1960s as a result of the politicization of accounting standard setting. We argue that auditing adapted to this change by establishing a conceptual framework based on checking the correspondence between assertions and established criteria. The second turning point is from historical cost to fair values, which changes the ontological premises of accounting thought in the direction of ontological subjectivity. This has profound consequences for auditing, which so far has failed to develop new epistemic criteria to deal with fair value accounting’s socially constructed reality. We conclude the paper by discussing some implications of this for the future of auditing thought and practice.
Antal sider34
StatusUdgivet - 2013
BegivenhedThe 7th Accounting History International Conference : Innovation in Accounting Thought and Practice - The Universidad Pablo de Olavide, Sevilla, Spanien
Varighed: 27 sep. 201327 sep. 2013
Konferencens nummer: 7


KonferenceThe 7th Accounting History International Conference
LokationThe Universidad Pablo de Olavide


  • Accounting history
  • Auditing
  • Conceptual framework
  • Asset valuation
  • Fair value
  • Historical cost