- 【Updated on May 12, 2025】 Integration of CiNii Dissertations and CiNii Books into CiNii Research
- Trial version of CiNii Research Knowledge Graph Search feature is available on CiNii Labs
- 【Updated on June 30, 2025】Suspension and deletion of data provided by Nikkei BP
- Regarding the recording of “Research Data” and “Evidence Data”
Goodwill Impairment and Audit Effort
-
- Al (Aloke) Ghosh
- The University of North Carolina at Charlotte
-
- Cunyu Xing
- Southwestern University of Finance and Economics
Search this article
Description
<jats:title>SYNOPSIS</jats:title> <jats:p>Using abnormal audit fees to capture added charges associated with incremental audit effort beyond the effort level needed under normal circumstances, we find that the incremental audit effort is positively associated with goodwill to total assets. Additionally, when goodwill is impaired, auditors exert incrementally more effort for testing the magnitude of a goodwill impairment loss than when goodwill is not impaired. Further, we document predictable temporal and cross-sectional variations in audit effort and goodwill relationship. As the accounting standards became more (less) stringent, there is a corresponding increase (decrease) in audit effort. The effort also varies cross sectionally with auditor quality. We also find that only a goodwill impairment loss is associated with longer audit delays. Finally, we provide corroborating evidence based on survey responses obtained from expert auditors. Our results contradict the perception that auditors do not exert incrementally more effort when testing goodwill for impairment.</jats:p> <jats:p>JEL Classifications: M40; M42; C42.</jats:p>
Journal
-
- Accounting Horizons
-
Accounting Horizons 35 (4), 83-103, 2021-04-05
American Accounting Association
- Tweet
Details 詳細情報について
-
- CRID
- 1360865821070018688
-
- ISSN
- 15587975
- 08887993
-
- Data Source
-
- Crossref