When enterprises conduct asset restructuring, such as mergers, deregulation and restructuring, or bankruptcy liquidation, etc., audits and evaluations must be carried out according to regulations or conventions. Although the new "Enterprise Accounting Standard No. 20 - Business Combinations" does not stipulate that business combinations must go through an evaluation process, instead using "book value" or "fair value" for accounting, it also stipulates the handling of "various direct costs related to business combinations, including auditing fees and evaluation fees paid for the merger...". This indicates that evaluations are often conducted in business combinations.
When appraisal institutions conduct valuation, they often use procedures similar or identical to auditing methods, such as physical inventory observation, confirmation, sampling, and testing, etc. Meanwhile, when auditing institutions conduct audits, they need to use fair value to test the value of assets and accordingly accrue asset impairment provisions or determine gains or losses from changes in fair value, which is not significantly different from the evaluation process. Thus, this creates an inseparable bond between evaluation and auditing. How to properly handle the relationship between evaluation and auditing in practical operations directly affects the efficiency and quality of both processes. Based on multiple instances of conducting evaluations while performing audits, I believe that there exists a need for division of labor and cooperation between evaluations and audits, as well as mutual inclusion in their respective business reports.