Research On The Improvement Of Audit Judgement On Minglei Company's Impairment Of Goodwill

Since the State Department issued a document in 2014 aimed at optimizing the market environment for corporate m&a,the internal and external environment has created conditions for loose,profitable,and regulated arbitrage for m&a,stimulating strong intentions for companies to expand.However,the high valuations,high premiums,and high performance of listed companies' mergers and acquisitions have promised to bet on gambling,and the judgment of impairment of goodwill by management.The quality of professional judgments undoubtedly affects the quality of audits.The criteria for the initial confirmation and follow-up measurement of goodwill is subjective,ambiguous and complex.On the one hand,this article describes the evaluation methods and value types of goodwill,initial recognition and impairment testing;on the other hand,describes the concept and relationship between auditing professional judgments and auditing risk,eliciting a framework for auditing professional judgments,and finally analyzing the rationality of auditing professional judgments.From the business situation of the two parties—the transaction price and goodwill of m&a-the measure of goodwill.Subsequently,the company's management's determination that goodwill has not been impaired.The auditors'professional judgments are subject to the auditing business—risk assessment procedures—further auditing procedures—summarize audit evidence—draw audit conclusions.At the end of the article,analyzes the problems existing in auditing professional judgments,and suggestions for improving the quality of professional judgments from auditing standards,intermediaries,and auditors.The innovations of this paper are:First,the existing academic research focuses on the confirmation and follow-up measurement of goodwill from the perspective of accounting;Second,the case compares professional judgments of the management and the auditors.Finally,the optimization suggestions are proposed for the subjective aspects of the impairment test of goodwill.