to audit goodwill

Step 1

Check it's material!

Step 2

Check it's in Intangible assets (or gone straight to the income statement if a bargain
purchase (negative goodwill))

Step 3

Check the purchase consideration is at fair value

So any future consideration is discounted and

any contingent consideration is at fair value (and included!)

Step 4

Check NCI (if at FV) uses the market price of the subs shares if its a plc

If it's not listed then check management used estimation techniques according to the fair
value hierarchy of inputs (IFRS 13)

Step 5

Check the net assets acquired includes all identifiable assets and liabilities at the date of
acquisition.

This will need some due diligence - looking specifically for contingent liabilities and
intangible assets
Also check that any FV adjustments are recorded correctly and depreciated post acquisition

Yours goodwillingly
Richard