What is the focus of audit of intangible assets?
Intangible asset is an identifiable non‑monetary asset without physical substance. Common examples of intangible assets may include: (a) brand names. (b) mastheads and publishing titles. (c) computer software. (d) licences and franchises. (e) copyrights, patents and other industrial property rights, service and operating rights. (f) recipes, formulae, models, designs and prototypes; and (g) intangible assets under development. Auditors use assertions to consider the different types of potential misstatements that may occur when identifying, assessing and responding to the risks of material misstatement. Assertions related to item of balance sheet “intangible assets” and the disclosure of information about it are listed below: · Existence. · Rights and obligations. · Completeness. · Accuracy, valuation and allocation. · Classification. · Presentation. The key assertions to obtain evidence about intan