Which of the following represents a primary audit concern for errors in the recording of intangible assets?
A)Capitalized research and development costs.
B)Amortization of patents.
C)Capitalized costs to successfully defend a patent.
D)Amortization of franchise fees.

Question

Quizplus · Accepted Answer

Capitalized research and development costs can be subjective and difficult to measure accurately, which increases the risk of errors in recording intangible assets. Therefore, they represent a primary audit concern. Amortization of patents, capitalized costs to successfully defend a patent, and amortization of franchise fees are also important considerations, but they are not the primary concern.

Which of the Following Represents a Primary Audit Concern for Errors