Title: Analysing the fair value measurement audit process using interpretive structural modelling: an empirical study

Authors: Prince Doliya; Jatinder P. Singh

Addresses: Department of Management Studies, Indian Institute of Technology Roorkee, Roorkee 247667, Uttarakhand, India ' Department of Management Studies, Indian Institute of Technology Roorkee, Roorkee 247667, Uttarakhand, India

Abstract: Last few decades have witnessed immense changes in global accounting standards all over the world and application of fair value measurement (FVM) is highly prominent among them. Indeed, whilst FVM inclusion enhances the informative significance of financial statements, it also instigates few complications i.e. reliability, measurement uncertainty and auditing challenges etc. (Doliya and Singh, 2015). This study focuses on FVM audit complexities and attempt to explore the key FVM audit factors while establishing the interrelationship among factors. To do this, we used exploratory factor analysis (EFA) to ascertain the factors of FVM audit process and interpretive structural modelling (ISM) for establishing the relationship among the factors. Practitioners and academicians can use the findings of this study to better understand the FVM audit process. Moreover, auditing firms may use the findings of this study to find the discrepancy in their FVM audit process and take corrective actions against it. In the end, implications, limitations and future research areas are discussed in detail.

Keywords: exploratory factor analysis; EFA; interpretive structural modelling; ISM; fair value measurement; FVM audit process; auditing; accounting standards.

DOI: 10.1504/IJMP.2016.077832

International Journal of Management Practice, 2016 Vol.9 No.3, pp.302 - 316

Received: 02 Jun 2015
Accepted: 04 Apr 2016
Published online: 16 Jul 2016 *

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