Research On Auditing Risks And Countermeasures Of DS Company’s Goodwill Impairment

With the flurry of merger activity in recent years,there are more companies with high goodwill in the A-share market gradually,and the scale of goodwill impairment is also gradually expanding,which has attracted widespread attention from all parties in the Chinese capital market.As an important gatekeeper of financial information,certified public accountants should pay close attention to the audit issues of goodwill and fully understand and deal with the audit risk of goodwill.In view of the cumbersome testing process of goodwill impairment,the subjectivity and uncertainty of the discretion of the management of the company involved are strong,and these factors increase the audit risks of certified public accountants in many aspects.Therefore,the research in the filed of identification and assessment of audit risk of goodwill impairment and solutions has great significance both in theory and reality.On the base of this,the thesis conduct a research in literatures and analysis on cases,ordering to find out the impairment of goodwill assets from an audit point of view,and discusses the company’s goodwill and its impairment problems in the work of auditors.First,the thesis summarizes the previous research on goodwill impairment and its audit risk.After that,in order to lay a theoretical foundation and benefit the intensive research,the thesis expounds the theory of modern risk-oriented audit,the goodwill impairment,the critical audit items,the process of audit risk identification and assessment for impairment of goodwill.Then,on the example of ZT Accounting firm’s audit of goodwill impairment of DS Company,it introduces DS Company’s business situation and the production process of high goodwill,DS Company’s accounting treatment of goodwill and ZT firm’s audit situation.on the basis of the working model of modern risk-oriented audit,from the two aspects of serious fault reporting risk and inspection risk respectively,it conducts a comprehensive identification and full evaluation on the audit risk of DS company goodwill impairment.Finally,it gives out responding advices of the specific risk for certified public accountants.In addition to enriching the theoretical research on the risk of goodwill impairment audit,this thesis aims to provide reference for certified public accountants to deal with the risk of goodwill impairment audit in the future,and to further standardize the practice activities of certified public accountants and raise the awareness of risk-oriented audit.