Risk Control Of Goodwill Impairment Audit In Media Industry

Since 2014,China’s capital market has been very active in mergers and acquisitions due to the strong support of policies,the scale of goodwill in the capital market has been increasing,and the asset-light characteristic of the media industry is obvious,mergers and acquisitions premium phenomenon is more prominent,in 2017 the media industry goodwill scale hit a record high,a total of 147.174 billion yuan.These premium goodwill in the media industry can not be included as an asset in the strict sense because it does not necessarily generate an inflow of economic benefits in the future.mergers and acquisitions increases the scale of listed companies,but it also brings the risk of impairment of goodwill formed by High Premium mergers and acquisitions.in 2018,the large-scale impairment of goodwill of listed companies in media industry led to concentrated release of impairment risk,created a goodwill“Bubble”.In order to maintain the stability of the capital market,the Certified Public Accountant should pay special attention to the audit risk of goodwill impairment.This paper focuses on the Goodwill Impairment Audit Risk Control Research: first,the status quo analysis,followed by case analysis and finally put forward the Goodwill Impairment Audit Risk Control measures.In the part of status analysis,this paper summarizes the goodwill and goodwill impairment of listed companies in media industry,the status quo of Goodwill Impairment Audit and its audit risk,this paper selects the sample companies in the media industry whose loss of goodwill impairment accounts for more than 100% of the net profit,and summarizes the types of audit opinions of goodwill impairment in recent years,the supervision of goodwill impairment and the risk of goodwill impairment audit.In the part of case analysis,this paper selects the case of Huayi Brothers’ Goodwill Impairment Audit,analyzes the formation process of Huayi Brothers’ goodwill and goodwill impairment,based on the risk-oriented audit theory,this paper focuses on the analysis of significant misstatement risk and inspection risk in the process of goodwill impairment audit.The major misstatement risk of goodwill impairment audit mainly includes the internal and external environment risk according to the risk factors,and the forming link according to the audit risk,the unreasonable valuation of goodwill,the complicated testing procedure of impairment of goodwill and the insufficient disclosure of accounting information related to goodwill all lead to audit risk,the inspection risks mainly include the Certified Public Accountant’s lack of independence in the course of the Goodwill Impairment Audit,the inadequate implementation of the audit procedures and the lack of regulatory Accounting networks and associations.This paper concludes that the media industry goodwill mergers and acquisitions premium is serious,and the paper proposes some measures to control the audit risk of goodwill impairment from a Certified Public Accountant perspective,in order to improve the Certified Public Accountant’s risk response level of the Goodwill Impairment Audit,and provide some ideas for them to deal with the Goodwill Impairment Audit in the audit practice.