Fair Value in financial reporting is widespread. The skills and knowledge necessary to be proficient in understanding and applying methods to determine fair value are specialized, taking years of study and experience. If an audit firm does not have internal specialists, does not have specific experience with a certain asset needing fair value assessment, or needs additional assistance during peak review periods, our firm can assist. Our Audit Support Services provide peer review of the fair value procedures of audit clients and their outside experts. Our analysis includes testing of significant assumptions used in the valuation, testing the selection and application of the valuation method being used, and testing of the underlying data used in the analysis. Our tests and review procedures are documented in a memorandum to the audit file to fully document the analysis.
Statement on Auditing Standards No. 101, Auditing Fair Value Measurements and Disclosures, states that "the auditor should consider whether to engage a specialist and use the work of that specialist as evidential matter in performing substantive tests to evaluate material financial statement assertions."
Our president, Mr. Darren S. Cordier, CFA, has served as an internal expert as a senior manager at Grant Thornton. He was also instrumental in developing the procedures and documentation requirements for audit review work. Mr. Cordier oversees all of our audit assistance work.