Intangible assets is an assets that lacks physical substance; in contrast to physical assets, such as machinery and buildings. Intangible assets are usually very hard to evaluate. For example patents, copyright, goodwill , trademarks and trade names etc. To choose: Situation which would not support the auditor decision to control risk for audit of intangible assets.

Question

Want to see the full answer?

Answer 1

Question

Chapter 14, Problem 14.18MCQ

To determine

Concept Introduction:

Intangible assets is an assets that lacks physical substance; in contrast to physical assets, such as machinery and buildings. Intangible assets are usually very hard to evaluate. For example patents, copyright, goodwill, trademarks and trade names etc.

To choose:Situation which would not support the auditor decision to control risk for audit of intangible assets.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Which of the following controls will most likely justify a reduced assessed level ofcontrol risk for the existence assertion for equipment?(1) Internal auditors periodically select equipment items in the fixed assets masterfile and locate the related equipment on company premises.(2) Department heads are asked to provide information to the accounting department each quarter about any equipment no longer in use or somewhat damaged.(3) All contracts of equipment purchases are reviewed by both the controller andattorney to verify that legal title transfers to the client and that none representoperating leases.(4) As part of quarterly and annual inventory physical counts, factory equipment islisted and subsequently reconciled to the fixed asset master file.

Based on the information in scenario C, classify the information (1-8) according to the elements of an audit finding (criteria, condition,cause, effect and recommendations)

Assume that the client’s internal controls over the recordingand classifying of fixed asset additions are considered deficient because the individualresponsible for recording new acquisitions has inadequate technical training and limitedexperience in accounting. How will this situation affect the evidence you should accumulate in auditing fixed assets as compared with another audit in which the controls areexcellent? Be as specific as possible.