What Factors Should the Auditor Consider When Assessing Whether to Perform

question 36

Essay

What factors should the auditor consider when assessing whether to perform substantive tests of final balances before the balance sheet date?

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Definitions:

Double-Declining-Balance Method

An accelerated depreciation method that doubles the normal depreciation rate, reducing the carrying value of an asset more quickly.

Patents

Government-granted exclusive rights to an inventor or assignee for a fixed period of time, in exchange for the public disclosure of an invention.

Tangible Assets

Assets that have physical substance

Trademarks

Symbols, names, or phrases legally registered or established by use as representing a company or product.