Goodwill impairment and key audit matters
AbstractThe main goal of this paper is to analyze the factors that influence the auditor’s decision to disclose goodwill impairment as a key audit matter (KAM). For this analysis, we use a logit model to determine the factors that influence auditors’ disclosure of a goodwill impairment as a KAM. Our...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2023-12-01
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| Series: | Cogent Business & Management |
| Subjects: | |
| Online Access: | https://www.tandfonline.com/doi/10.1080/23311975.2023.2207877 |
| _version_ | 1797265290226040832 |
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| author | Inês Gonçalves Ana Isabel Morais Inês Pinto |
| author_facet | Inês Gonçalves Ana Isabel Morais Inês Pinto |
| author_sort | Inês Gonçalves |
| collection | DOAJ |
| description | AbstractThe main goal of this paper is to analyze the factors that influence the auditor’s decision to disclose goodwill impairment as a key audit matter (KAM). For this analysis, we use a logit model to determine the factors that influence auditors’ disclosure of a goodwill impairment as a KAM. Our sample comprises 92 companies listed in the stock market indices of Germany (DAX 30), Belgium (BEL 20), Spain (IBEX 35), France (CAC 40), the Netherlands (AEX), and Portugal (PSI 20) as of the 2017 fiscal year-end. The results show that in highly profitable companies or in those with strong corporate governance, the auditor is less likely to disclose goodwill impairment as a KAM. Findings also show that the economic significance of goodwill holds significant influence over the auditor’s decision-making even in companies with strong governance structures. The contribution of this paper is the provision of direct evidence on what motivates auditors to disclose goodwill impairment as a KAM. Findings show a direct relationship between profitability, corporate governance, and the disclosure of goodwill impairment as a KAM. |
| first_indexed | 2024-03-07T14:19:55Z |
| format | Article |
| id | doaj.art-eff804ac6dbf49b99f2797d189eaf3af |
| institution | Directory Open Access Journal |
| issn | 2331-1975 |
| language | English |
| last_indexed | 2024-04-25T00:42:27Z |
| publishDate | 2023-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Business & Management |
| spelling | doaj.art-eff804ac6dbf49b99f2797d189eaf3af2024-03-12T08:30:27ZengTaylor & Francis GroupCogent Business & Management2331-19752023-12-0110210.1080/23311975.2023.2207877Goodwill impairment and key audit mattersInês Gonçalves0Ana Isabel Morais1Inês Pinto2ISEG – School of Economics and Management, University of Lisbon, Lisbon, PortugalAdvance/CSG, ISEG – School of Economics and Management, University of Lisbon, Lisbon, PortugalAdvance/CSG, ISEG – School of Economics and Management, University of Lisbon, Lisbon, PortugalAbstractThe main goal of this paper is to analyze the factors that influence the auditor’s decision to disclose goodwill impairment as a key audit matter (KAM). For this analysis, we use a logit model to determine the factors that influence auditors’ disclosure of a goodwill impairment as a KAM. Our sample comprises 92 companies listed in the stock market indices of Germany (DAX 30), Belgium (BEL 20), Spain (IBEX 35), France (CAC 40), the Netherlands (AEX), and Portugal (PSI 20) as of the 2017 fiscal year-end. The results show that in highly profitable companies or in those with strong corporate governance, the auditor is less likely to disclose goodwill impairment as a KAM. Findings also show that the economic significance of goodwill holds significant influence over the auditor’s decision-making even in companies with strong governance structures. The contribution of this paper is the provision of direct evidence on what motivates auditors to disclose goodwill impairment as a KAM. Findings show a direct relationship between profitability, corporate governance, and the disclosure of goodwill impairment as a KAM.https://www.tandfonline.com/doi/10.1080/23311975.2023.2207877goodwill impairmentaudit reportkey audit matterscorporate governance |
| spellingShingle | Inês Gonçalves Ana Isabel Morais Inês Pinto Goodwill impairment and key audit matters Cogent Business & Management goodwill impairment audit report key audit matters corporate governance |
| title | Goodwill impairment and key audit matters |
| title_full | Goodwill impairment and key audit matters |
| title_fullStr | Goodwill impairment and key audit matters |
| title_full_unstemmed | Goodwill impairment and key audit matters |
| title_short | Goodwill impairment and key audit matters |
| title_sort | goodwill impairment and key audit matters |
| topic | goodwill impairment audit report key audit matters corporate governance |
| url | https://www.tandfonline.com/doi/10.1080/23311975.2023.2207877 |
| work_keys_str_mv | AT inesgoncalves goodwillimpairmentandkeyauditmatters AT anaisabelmorais goodwillimpairmentandkeyauditmatters AT inespinto goodwillimpairmentandkeyauditmatters |