Revision af investeringsejendomme målt til dagsværdi: En løsningsorienteret gennemgang af revisors udfordringer ved revision af dagsværdimålingen af investeringsejendomme

Martin Toft Andersen

Student thesis: Master thesis


In general fair value is given by the price for an asset or a liability in a normal transaction between market participants on the time of measurement. Since it is not an option for the companies to sell all its assets or liabilities in order to measure the fair value at year-end it is necessary to estimate the fair value. The fair value of investment property can be estimated by comparing current prices of similar properties or by dis-counting estimated future cash flows generated by the property. The key word is estimate. The difficulties arising from this accounting estimate has been made clear in several rulings from authorities monitoring Managements preparation of financial statements including investment properties measured at fair value as well as Auditors work performed with regards to the measuring of fair value. The lack of skep-ticism in the work performed by auditor on the measurement of fair value is the common denominator in the rulings from the Auditors commission in Denmark1 This master thesis aims to provide help to auditors overcome these difficulties when auditing investment properties measured at fair value. In order to do so the concept of audit evidence as described by Mautz and Sharaf in their philosophy of auditing will be looked at. This should give auditors an idea on how audit evidence is produced and how the strength of audit evidence depends on the way it is produced. On the a more operational level the ISA 540 (Auditing Accounting estimates, including fair value accounting esti-mates, and related disclosures) states that the audit can be performed using four different audit proce-dures which this thesis has summed up to three audit procedures: . • Events Occurring Up to the Date of the Auditor’s Report • Testing How Management Made the Accounting Estimate • Developing a Point Estimate or Range The performance of these audit procedures should not arise any difficulties when auditing investment properties measured at fair value - the difficult part of the audit process is evaluating when the audit evi-dence is sufficient and appropriate. The lack of an objective scale to make this evaluation, calls for the use of auditor's professional skepticism and judgment. Since the auditor's report and any modification hereof depends on the evaluation of the audit evidence there is a possibility that auditors compile a wrong audi-tor's report. Hopefully this thesis will help auditors collect sufficient and appropriate audit evidence and making the ap-propriate evaluation on the audit evidence at hand.

EducationsMSc in Auditing, (Graduate Programme) Final Thesis
Publication date2013
Number of pages99