Goodwill impairment test Angle of audit quality research
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Yuyang Cao, Yao Ning
In recent years, mergers and acquisitions of Chinese a-share listed companies have confirmed A large amount of goodwill, and auditors need to focus on the audit risk of goodwill when issuing audit opinions. The fair value measurement of goodwill makes it difficult to obtain active quotation in the open market, and the management has great discretion, which makes the initial recognition of goodwill and its impairment treatment subjective and increases the difficulty and risk of auditing for certified public accountants. Therefore, it is of great practical significance to study how to identify and evaluate the material misstatement risk of goodwill and reduce the audit risk of goodwill. This paper comprehensively analyzes the audit risk of goodwill impairment. Firstly, the audit risk of goodwill is analyzed, and the initial recognition and subsequent measurement of goodwill are organically linked. According to the identification framework of the material misstatement risk of goodwill, this paper analyzes how to identify and evaluate the material misstatement risk of goodwill from the two levels of material misstatement risk at the level of financial statements and material misstatement risk at the level of goodwill identification, so as to control the inspection risk of goodwill and reduce the audit risk of goodwill to an acceptable level. Finally, some Suggestions are put forward to reduce the risk of goodwill impairment test.
Goodwill, audit, audit risk