Study On The Audit Risk Of Goodwill Impairment

With the boom of merger and acquisition in China,more and more listed companies in the A-share market have generated merger goodwill,and the scale of impairment of goodwill also increases with the increase of the scale of goodwill,which also attracts the attention of all market parties.Due to the strong subjectivity of goodwill impairment,it also increases the auditing difficulty and auditing risk of certified public accountants.Therefore,it is of great practical significance to study how to identify and evaluate the audit risk of goodwill impairment.This paper adopts the method of literature research,normative research and case analysis.First,by looking at related research about the domestic and foreign scholars on the influence factors of goodwill and audit risk of goodwill;Then suppling the provisions of the new accounting standard for business enterprises in our country and the relevant provisions of the audit work,and combining with the risk-oriented audit theory,the fraud triangle theory and information asymmetry theory,which can provide a solid theoretical foundation to the research of this paper.Last,supplemented by Tian Guang Zhong Mao as a case in the concrete research,through the introduction of the mergers and acquisitions background,the company profile of mergers and acquisitions,mergers and acquisitions process and initial recognition of goodwill and goodwill impairment and relevant information disclosure,to analyze Tian Guang Zhong Mao’s audit risk of goodwill impairment.Then put forward the corresponding risk prevention measures.Most of the existing researches focus on the relationship between the impairment of goodwill and audit charges or audit quality,and indirectly study the impairment of goodwill and audit risk by studying the impairment of goodwill and earnings management.Therefore,the innovation of this paper is as follows: starting from the influencing factors of goodwill impairment,select four representative influencing factors,which run through the whole measurement process of goodwill,combine he existing theories and the latest cases and use the risk-oriented audit model to analyze the audit risk of goodwill impairment.This paper has the following research conclusions:(1)the audit risk components of goodwill impairment are reflected in the impact factors of goodwill impairment.,the risk elements are: the method of share payment,income method assessment,performance commitment and the provisions of accounting standards for enterprises.(2)in the case of Tian Guang Zhong Mao Co.Ltd’s merger with Zhong Mao Yuan Lin and Zhong Mao Sheng Wu,in terms of material misstatement risks at the financial statement level,the risk factors are mainly external environmental risks,enterprise operation risks and internal control risks,and the analysis shows that the risk is relatively high;In terms of the risk of material misstatement at the level of goodwill recognition,the risk factors are consistent with the impact factors of goodwill impairment.In terms of the inspection risk of goodwill impairment,the risk level of goodwill impairment was high,because the annual audit CPA at that time did not maintain their due professional skepticism,and the audit process was deficient.The research significance of this paper is as follows: in the face of the severe situation of the total amount of goodwill and the impairment of goodwill in China’s A-share market,as well as the stricter regulatory environment,it is of certain practical significance to discuss the audit risk of the impairment of goodwill.By selecting the latest enterprise case as the research object,it has certain timeliness and guiding significance.