In verifying the amount of goodwill recorded by an entity, the most convincing evidence that an auditor can obtain is by comparing the recorded value of assets acquired with the

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The most convincing evidence of the value of goodwill is the appraised value, which is determined by an independent appraiser. This is likely to be more reliable than the seller's book value, which may not accurately reflect the fair value of the assets, or other values such as tax or insurance values, which may be based on different criteria. Therefore, an auditor should rely on appraisals to verify the amount of goodwill recorded by an entity.

In Verifying the Amount of Goodwill Recorded by an Entity