 |
| @ |
@ |
@ |
| @ |
SAS No. 42 Auditing
Fair Value Measurements and Disclosures |
@ |
|
|
|
| @ |
 |
@ |
| @ |
 Status |
@ |
| @ |
@ |
@ |
| @ |
Issued by Auditing Standards Committee in Taiwan on 1 July,
2005. |
@ |
| @ |
@ |
@ |
| @ |
Summary |
@ |
| @ |
@ |
@ |
| @ |
This Statement addresses audit considerations relating to the
measurement, presentation and disclosure of material assets,
liabilities and specific components of equity presented or
disclosed at fair value in financial statements. Fair value
measurements of assets, liabilities and components of equity may
arise from both the initial recording of transactions and later
changes in value. |
@ |
| @ |
@ |
@ |
| @ |
Management is responsible for making the fair value measurements
and disclosures included in the financial statements. As part of
fulfilling its responsibility, management needs to establish an
accounting and financial reporting process for determining the
fair value measurements and disclosures, select appropriate
valuation methods, identify and adequately support any
significant assumptions used, prepare the valuation and ensure
that the presentation and disclosure of the fair value
measurements are in accordance with generally accepted
accounting principles. |
@ |
| @ |
@ |
@ |
| @ |
As part of the understanding of the entity and its environment,
including its internal control, the auditor should obtain an
understanding of the entityfs process for determining fair value
measurements and disclosures and of the relevant control
activities sufficient to identify and assess the risks of
material misstatement at the assertion level and to design and
perform further audit procedures. |
@ |
| @ |
@ |
@ |
| @ |
The auditor should evaluate whether the fair value measurements
and disclosures in the financial statements are in accordance
with generally accepted accounting principles. |
@ |
| @ |
@ |
@ |
| @ |
The auditor should determine the need to use the work of an
expert. |
@ |
| @ |
@ |
@ |
| @ |
The auditor should design and perform further audit procedures
in response to assessed risks of material misstatement of
assertions relating to the entityfs fair value measurements and
disclosures. |
@ |
| @ |
@ |
@ |
| @ |
In making a final assessment of whether the fair value
measurements and disclosures in the financial statements are in
accordance with generally accepted accounting principles, the
auditor should evaluate the sufficiency and appropriateness of
the audit evidence obtained as well as the consistency of that
evidence with other audit evidence obtained and evaluated during
the audit. |
@ |
| @ |
@ |
@ |
| @ |
The auditor should obtain written representations from
management regarding the reasonableness of significant
assumptions, including whether they appropriately reflect
managementfs intent and ability to carry out specific courses of
action on behalf of the entity where relevant to the fair value
measurements or disclosures. |
@ |
| @ |
|
|
|
 Effective
date
|
|
|
|
|
|
@ |
| @ |
This Statement is effective from 1 January, 2006. |
@ |
| @ |
@ |
@ |
| @ |
@ |
@ |
| @ |
@ |
@ |
| @ |
@ |
@ |
| @ |
@ |
@ |
| @ |
@ |
@ |
| @ |
@ |
@ |
| @ |
@ |
@ |
|
|
