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Assume that during the audit of the public Chandler Corporation the following critical matter was identified and summarized for purposes of inclusion in the audit report. Critique presentation and details of the matter.

Critical Audit Matter

The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the boards of directors and that (1) relate to any accounts or disclosures related to the financial statements and (2) involve especially complex matters. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are, by communicating the critical audit matter below, providing a separate opinion on the critical audit matters or on the accounts or disclosures to which they relate.

Goodwill

Under generally accepted accounting principles, the company is required to annually test the amount of goodwill for impairment. This annual impairment test was significant to our audit because the balance of $12,000,000 as of December 31, 20X1 is material to the financial statements. In addition, management's assessment process is complex and highly judgmental and is based on assumptions, specifically [assume assumptions are presented], which are affected by expected future market or economic conditions, particularly those in India and Nepal. Accordingly, we disclaim an opinion on the goodwill. The company's disclosures about goodwill are included in Note 6.

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