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)occurrence.

Question

Quizplus · Accepted Answer

The assertion of valuation and allocation relates to whether the recorded amount of intangible assets is accurate and in accordance with generally accepted accounting principles. Determining the reasonableness of amortization amount helps to support this assertion by ensuring that the asset's value is being properly allocated over its useful life. The other assertions (existence, completeness, and occurrence) are not directly related to the amortization amount.

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