Research On Audit Risk Of Goodwill

In recent years.A share market listed companies have confirmed the huge goodwill through mergers and acquisitions in China.The audit risk of goodwill becomes an important factor that needs to be considered.Goodwill improves the audit difficulty and audit risk of CPA.The main reasons are that the fair value of goodwill property and getting active open market quotes difficultly and Management discretion.How to identify and assess the risk of material misstatement and reduce the audit risk of goodwill will be a practical research problem.This article chooses Steyr Motors corporation as the case study object and has a comprehensive analysis of audit risk of Goodwill in the initial confirmation and subsequent impairment of the two stages.The initial audit risk of goodwill is the starting point of the case study M&A.Then analyze the audit risk of goodwill in general financial statements.The initial confirmation of goodwill is associated with subsequent measurement.How to identify and evaluate the risk of material misstatement of goodwill and reduce the audit risk is the key.Based on the initial confirmation and subsequent measurement of the background.motive and goodwill of the business combination.According to the recognition of goodwill risk of misstatement of the framework From two levels to analyze how to identify and assess the risk of material misstatement.It is that risk of material misstatement at the financial reporting level and the risk of material misstatement at the assertion level.Reducing the audit risk of goodwill to an acceptable low level.This paper has the following conclusions.(1)Putting forward the method of identifying the risk of material misstatement of goodwill.According to the logical thinking of risk factor-risk event-risk result analyzing and generating the risk of material misstatement.Establish a logical relationship between risk factors and the risk of material misstatement of internal and external business environment of goodwill.(2)The risk of good misstatement of goodwill is the main reason for the risk of goodwill auditing.Putting forward two steps to identify and assess the risk of goodwill misstatement.The first step is to identify and assess the risk of material misstatement at the financial level.and the second step is to identify and assess the risk of material misstatement at the identified level.(3)Major misstatement risk factors are mainly external environmental risk and customer management risk and internal control risk and risk of review the assessment report in Merger and Acquisition audit.CPA have a lower risk of material misstatement Then significant misstatement risk factors are mainly external environmental risks.customer operating risks and internal control risk and accounting fraud risk in the general financial statement.CPA have a higher risk of material misstatement.