The least effective means for the auditor to determine whether a recorded intangible asset possesses the characteristic of an asset is Vouch the purchase by reference to underlying documentation. Inquire as to the status of the patent application. Evaluate the future revenue-producing capacity of the intangible asset Analyze the research and development expenditures to determine that only those expenditures possessing future economic benefits have been capitalized.

Q: An intangible asset may be recorded:  Select one: a. . at the cost of the asset, which must exclude…

A: Solution: An intangible asset may be recorded, "if acquired from an external party at a cost."

Q: Which statement is correct regarding the treatment of research costs in accordance with IAS 38…

A: Intangible assets are those assets which can not be seen or touched. These assets can only be felt…

Q: Under IFRS, an entity that acquires an intangible asset may use the revaluation model for subsequent…

A: As per IFRS on Intangible Assets, an intangible asset can be revalued only when there is an active…

Q: 5) Which of the following costs should always be expensed as incurred? A) the costs of externally…

A: Solution" As per GAAP, internally developed intangible assets are not capitalized unless same is…

Q: What general procedures are applied in accounting for the acquisition and potential cost allocation…

A:

Q: In performing risk assessment procedures for property, plant and equipment, an auditor may inquire…

A: Lets understand the basics. Risk assessment procedure in audit is done by the audit to obtain the…

Q: Should the engineers be able to assess the reality of depreciating fixed assets?

A: A company should assess the position of its fixed asset and check for its impairment if condition…

Q: Plant, property and equipment and limited life identifiable intangible assets are recorded at cost…

A: Depreciation or amortization means fall in value of assets because of use of assets , passage of…

Q: An entity that acquires an intangible asset may use the revaluation model for subsequent measurement…

A: Lets start with basic understanding. Intangible asset is considered under IAS 38 " Intangible…

Q: Explain the appropriate treatment required when an error in accounting for property, plant, and…

A: Definition:   Assets: These are the resources owned and controlled by business and used to produce…

Q: An entity that acquires an intangible asset may use the revaluation model for subsequent measurement…

A: Intangible assets are those which does not have physical substance. It includes copyright, goodwill,…

Q: What assertions found in PP&E, investments, and intangibles accounts are of interest to an…

A: Management assertion refers to the claim made by the management assuring about the accuracy of…

Q: Under IFRS, a company that acquires an intangible asset may use the revaluation model for subsequent…

A: IFRS Policy International Financial Reporting Standards (IFRS) refers to the common set of rules and…

Q: State the recognition criteria for an intangible asset. ii）Briefly explain the recognition criteria…

A: Cost refers to the money value which business had to spend in order to produce, enhance the goods…

Q: Included in the requirements for an intangible asset arising from development (or from the…

A: An intangible asset is the type of resource which cannot be touched or seen. It gives the authority…

Q: Why is it crucial to the integrity of the financial statements that the fixed asset department be…

A: Fixed Asset System:   The asset used by company for more than one year is known as fixed asset.…

Q: 4. Which of the following risks is an inherent risk related to asset impairment? a. Determining…

A: The Assets impairment is defined as the unexpected fall in the value of the assets. As the assets…

Q: The general rule in the accounting treatment of research and development costs is    A. Capitalize…

A: This question deals with the IAS 38 "Intangible Asset". As per accounting standard, intangible asset…

Q: Which of the following statements is correct?   Question 1 options: a Some intangible assets have…

A: Intangible Assets: These are the assets that do not have any physical presence in real but have…

Q: What factors or variables are considered when estimating the depletion base for an asset? Can you…

A: Estimating the depletion base for an asset refers to the process of determining the total value of…

Q: For the year just completed, Hanna Company had net income of $64,500. Balances in the company's…

A: The indirect method for preparing the cash flow statement is a balance sheet (or statement of…

Q: order to determine usefulness of intangibles, investigation and the examination of income data…

A: Goodwill, patent and others is an intangible asset which cannot be seen or touched, add value to the…

Q: Which of the following items shall not be capitalized into the cost of property, plant, and…

A: IAS 16 Property, Plant and Equipment covers the accounting treatment of property, plant and…

Q: An intangible asset may be recorded: A. if acquired from an external party at a cost. B. if it is…

A: Answer -   Correct Option is A. if acquired from an external party at a cost.

Q: Which of the following costs incurred internally to create an intangible asset is generally…

A: An intangible asset is an asset that lacks physical substance. Examples are patents, copyright,…

Q: Research and development is an internally developed intangible asset that should be: capitalized…

A: Research and development costs refers to costs which are incurred in order to develop and process a…

Q: Describe the rationale and procedures for impairment testing for intangible assets other than…

A: Intangible assets:   These are the long-term assets which are not physical in nature, but possess…

Audit Procedures

Audit Procedures are methods and techniques performed by the auditor to determine the quality of financial information of clients, thereby expressing an opinion on true & fair view of financial statements and entity position. They are identified and applied at the planning stage of audit after determining audit objectives, scope, approach, and risk assessment.