A Study On The Response To The Audit Risk Of Goodwill Impairment

In recent years,my country’s capital market has grown rapidly,and the wave of mergers and acquisitions among enterprises has also followed.At present,the amount of goodwill impairment to be accrued in the market is still very large,which means that once the company accrues all the goodwill impairment,its financial situation may be severely hit,and even the stock price will be negatively affected to a certain extent.Impact.The current goodwill impairment method is also flawed,because the judgment on the amount of goodwill impairment is relatively subjective,which is easy to create opportunities for management’s earnings manipulation,which greatly increases the audit risk and brings great challenges to the certified public accountant..In the context of huge goodwill and its impairment,goodwill impairment has become a key concern in the audit of certified public accountants,and it is also a high-risk area.Therefore,this paper conducts corresponding research on the methods of goodwill impairment audit,which contains stronger practical significance.This paper adopts the methods of literature research,statistical analysis and case analysis.First,this paper introduces the research background and significance,explains the significance of this research,and expounds the specific innovations and deficiencies.Then,this paper summarizes the relevant researches on goodwill and its impairment by domestic and foreign scholars,as well as goodwill impairment audit,finds the gap of academic achievements,and provides relevant audit theories,my country’s accounting standards and regulatory authorities’ audit of goodwill impairment.The regulations of the work are sorted out to provide a solid theoretical basis for the following research.Next,from the perspective of specific cases,this paper selects the case of Ruihua auditing Fenda Technology as a typical case to conduct a more detailed analysis,and summarizes the goodwill impairment of Fenda Technology by describing the motivation and signs of Fenda Technology’s violation.The audit risk points,and put forward the specific problems of Ruihua in the audit response.Subsequently,from the level of the firm,this article counts the overall situation that Ruihua has frequently received warning letters related to goodwill in recent years,summarizes the reasons for violations of the representative Ruihua accounting firms,and summarizes its impairment of goodwill.Audit response issues.Finally,this paper proposes effective measures to deal with the audit risk of goodwill impairment in stages,summarizes the research conclusions of the full text,and looks forward to the future.Through the research,this paper hopes to provide a certain reference value for the goodwill impairment audit response in future practice,and provide certain help for auditors to respond to the goodwill impairment audit risk.Moreover,this paper studies from the perspective of audit risk,hoping to enrich the related literature on goodwill and its impairment audit to a certain extent.