- This topic has 1 reply, 2 voices, and was last updated 1 year ago by .
Viewing 2 posts - 1 through 2 (of 2 total)
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.
PQ Awards Nominations
Please help us to win one of the PQ Magazine awards and send in the voting form >>
You can nominate us in any or all of the following categories: Online College of the Year, Study Resource of the Year, Private Sector Lecturer of the Year, and Accountancy Personality of the Year.
Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › misstatement of licenses
Misstatement of intangible assets (licences) due to incorrect amortisation
Match the audit risks given with the MOST appropriate response the auditor of Veryan Co should take.
actual answer: Calculate the expected amortisation
my answer: Inspect the licence agreement
maam inspecting the license agreement will STRAIGHTAWAY tell us the length of period for which the agreement has been signed and this will be the useful life of the license, so i dont understand why my answer is wrong?
Because to inspect the licence is primarily to confirm its existence/ownership and although that will indicate a term – you’d still have to make a calculation whether the amortisation is materially misstated.
Whereas to calculate what it should be immediately gives you a $ amount against which to make a comparison.
Note that “most” Qs should not be so subjective in the real exam
https://opentuition.com/topic/mtqs-gudance