- 15 Marks
AA – Nov 2018 – L2 – Q5 – Audit Evidence
Outline the audit tests for purchased goodwill and development projects, and the conditions for recognizing development projects in financial statements.
Question
The intangible assets that can be recognized in the statement of financial position are purchased goodwill, intangibles having a readily ascertainable market value, and development costs.
Required:
a. State five audit tests required to obtain audit evidence on purchased goodwill.
(5 Marks)
b. Identify five audit tests relevant to obtaining evidence on development projects.
(5 Marks)
c. Itemize five conditions that must be fulfilled before development projects can be recognized in the financial statements.
(5 Marks)
Find Related Questions by Tags, levels, etc.
- Tags: Audit evidence, Development Costs, IAS 38, Intangible Assets, Purchased Goodwill
- Level: Level 2
- Topic: Audit evidence
- Series: NOV 2018
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