Reference no: EM132805934
Problem 1: In your audit of the intangible asset accounts of ASUS Industries, you have marked some notable items that seem to be mistreated by the company in terms of classifying as intangible assets. Which of the following does not qualify as an intangible asset?
A. Registered patent for its technology registered in Philippine Patenting Office
B. High Powered Laptop commercially available used in its administrative function
C. Computer software that the company created duly licensed in a regulating agency
D. Copyright of its Musical Piece used in marketing its products
Problem 2: In the audit for a company's goodwill, you have seen that the company has been amortizing its goodwill over a 40-year period. Which of the following procedures are you most likely to suggest as correction for the client?
A. Continue to amortize the cost of the goodwill over a 40-year period
B. Allow adjustment for the client for a legal life of 20-years for the goodwill, providing necessary retroactive adjustments to the original entries made
C. Suggest that an entry be made to record the goodwill at cost and be tested for impairment on an annual basis and more often if certain events occur
D. Suggest that an entry be made to record the goodwill at cost and be tested for impairment every three years
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