| Summary: | 碩士 === 國立政治大學 === 會計研究所 === 99 === With the development of internationalization and the release of related
regulations, more and more companies enhance their competitiveness by means of
investment and acquisition, which is often followed by the recognition of goodwill.
Since the nature of goodwill is unique and its amount is often significant, the demand
of high quality auditors is on the increase. Companies need them to improve and
monitor the recognition, management and evaluation of goodwill. Recently, due to the
fair value accounting concept, more attention is drawn on the change of goodwill
accounting. Therefore, in this study we summarize the accounting treatment of
goodwill and its impairment in Taiwan during the past ten years. Our main objective
is to examine whether specialist auditor choice is associated with the importance of
goodwill.
We find evidence that goodwill is positively associated with the choice of
auditors who specialize in auditing goodwill account. Additionally, compared to the
other auditors, big 4 auditors can restrain earnings management, especially when
companies experienced financial distress and tended to take a big bath by recognizing
goodwill impairment.
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