Study On The Recognition And Response To The Risk Of Goodwill Impairment Audit Of Film And Television Company

In recent years,film and television companies have confirmed a total of 10 billion yuan of goodwill impairment losses,resulting in profit decline,performance fluctuations and other adverse effects.The impairment test of goodwill is both complex and subjective,and there is no objective and unified standard to regulate it,so the management has a lot of discretion and is likely to use it to adjust profits and carry out earnings management.This will seriously affect the fairness of financial statements,and then greatly increase the audit risk.In the "Accounting Regulatory Risk Alert No.8-Impairment of Goodwill" issued by China Securities Regulatory Commission in November 2018,auditors are required to pay high attention to the potential material misstatement risk of goodwill impairment.Under the background of film and television companies confirming huge goodwill impairment losses,goodwill impairment has become an important and high-risk area in the audit of film and television companies’ financial statements.In order to improve audit quality and efficiency,it is necessary for auditors to effectively identify the risk points of goodwill impairment of film and television companies and adopt reasonable audit procedures to deal with audit risks.Based on principal-agent theory,earnings management theory and risk-oriented audit theory,this thesis studies the identification and response of goodwill impairment audit risk of film and television companies.First of all,this thesis reviews and summarizes relevant research contents of goodwill and goodwill impairment,audit risk identification and response,goodwill impairment and audit risk at home and abroad.Secondly,the characteristics of film and television companies,the situation of goodwill impairment and goodwill impairment audit are analyzed.Thirdly,three representative A-share film and television companies are selected for case studies to identify and analyze the risk points of major misstatement of goodwill impairment of film and television companies from the two levels of financial statements and identification.It is found that the major misstatement risks of financial statements mainly include external risks such as macro environment risk,market environment risk and regulatory environment risk,as well as internal risks such as enterprise operation risk,financial accounting risk and internal control risk.The material misstatement risks at the identification level mainly include the risk points of goodwill initial recognition,asset group division and evaluation,performance commitment and earnings management.Finally,suggest to deal with the film and television company goodwill audit risk measures,including strengthening appointed goodwill impairment audit risk control consciousness,familiar with the film and television company management audit personnel,pay attention to the film and television company goodwill related division and allocation,attaches great importance to the goodwill of the asset group’s review of key parameters,reasonable use analysis procedures and proper use of specialist work.This thesis hopes to provide some referential suggestions for auditors to identify and deal with the goodwill impairment audit risks of film and television companies through a multi-case study.