Research On Risk Identification And Response Of Goodwill Audit In The Media Industry

With the rapid development of the capital market,high-premium mergers and acquisitions have occurred frequently in recent years,and the subsequent huge goodwill impairment problem has been exposed in the past two years.The media industry's "light assets,high valuation" feature has accumulated a huge goodwill bubble.If a large amount of impairment loss occurs,it will have an adverse impact on the company's current profitability.Due to the complexity of the goodwill impairment test,management is very likely to use it for earnings management,which will adversely affect the fairness of the financial statements,thereby greatly increasing the risk of certified public accountants when performing goodwill audits.Based on this background,this article has a strong practical significance to study how to identify and evaluate the audit risk of goodwill.This article first summarizes the literature basis and theoretical knowledge related to goodwill and audit risk,and secondly introduces the goodwill and impairment of goodwill in the media industry.It statistically analyzes the disclosure status of key audit issues of goodwill in the media industry.The case analysis section Taking Tianshen Entertainment as an example,the specific analysis of its M & A process is carried out to identify and evaluate the risk of major misstatement of goodwill from the financial statement level and the identification level,and at the same time analyze the inspection risks existing in the audit process.It proposes countermeasures against the identified risks to reduce the risk of goodwill audit to a certain extent and improve the quality of goodwill audit.The research in this paper found that:(1)high valuation and high premium in the media industry are the direct reasons for the formation of a large amount of goodwill.In the course of goodwill auditing,certified public accountants should pay attention to the rationality of valuation and the completion of performance commitments;(2)Relying on the modern risk-oriented audit risk model,the case company's goodwill financial statement level major misstatement risk analysis mainly focuses on external environmental risks,business operations risks,and internal control risks.When identifying and evaluating the level of major misstatement risks,focus on the enterprise The reasonableness of valuation,the completion of performance commitments and the standardization of the goodwill impairment test;(3)After specific analysis,this article believes that the audit risk related to the goodwill of Tenjin Entertainment is relatively high,mainly due to the imbalance of internal control and the valuation of goodwill As well as the subjectivity of the impairment test and the low binding capacity of performance commitment compensation,based on the main risk points identified above,the overall response measures and further audit procedures are proposed for the audit risks at the two levels,thereby improving the goodwill audit quality.Finally,it proposes development suggestions for the issue of goodwill.