In auditing intangible assets, an auditor would determine whether the amortisation amount is reasonable in support of management's financial statement assertion of:
A) valuation and allocation.
B) existence.
C) completeness.
D) rights and obligations.

Question

Quizplus · Accepted Answer

Valuation and allocation refer to the financial statement assertion that intangible assets are initially recorded at their cost or fair value and are subsequently amortized over their estimated useful lives. Therefore, an auditor would determine whether the amortization amount is reasonable in support of management's assertion of valuation and allocation.

In Auditing Intangible Assets, an Auditor Would Determine Whether the Amortisation