The Impact of the Challenges in Auditing Fair Value Measurements on Audit Quality: Evidence from Tunisia

DOI: https://doie.org/10.10399/APER.2026895796

Authors:

Syrine Rahmouni, Emna Boumediene

Keywords:

Audit, Fair Value, Challenges, Audit Quality, Logistic Regression

Abstract:

The paper studies the impact of the challenges faced in auditing complex fair value measurements on audit quality. Using survey data, we gather information from audit partners with experience and expertise in auditing fair value measurements to gain further insights into areas that have not been explored in prior research. We extend the literature on collecting information relating to the most critical factors specific to the environment, the task, the auditor, and their interactions that may contribute to audit deficiencies, as well as how challenges differ when auditing financial versus nonfinancial fair value measurements. The findings of this study revealed that the degree of subjectivity of the data and assumptions of fair value measurements, the expertise and knowledge of the auditors, and the use of specialists are the most critical factors contributing to the complexity of auditing fair value. On the other hand, the challenges of fair value audits differ between financial and nonfinancial fair value. However, these challenges have no impact on the audit quality. This study shows that Tunisian external auditors believe the advantages of fair value surpass its drawbacks.

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