The typical assertions related to investments and related accounts would not include the PCAOB assertion that
A) Capitalized intangible costs relate to intangibles acquired in exchange transactions.
B) Amortization is properly calculated.
C) Research and development costs are properly classified.
D) Goodwill is valued at market value.

Question

Quizplus · Accepted Answer

The typical assertions related to investments and related accounts include the accuracy and completeness of financial reporting, validity and authorization of transactions, existence and occurrence of investments, rights and obligations, and completeness and accuracy of disclosures. Goodwill is not valued at market value but is tested for impairment annually, which is not related to PCAOB assertions. Therefore, option D is the correct answer.

The Typical Assertions Related to Investments and Related Accounts Would