Basic Staff Training

Series: Auditing

Goodwill, Intangibles

and Deferred Charges

Course Description:

For more entities, auditing procedures for goodwill, intangibles, and deferred charges will be performed during tests and balances. While management has primary responsibility for recording and periodically measuring these intangible assets, the auditor has the responsibility for determining the reasonableness of management’s processes and their valuations of these assets. Realistically, managements of small to medium-sized entities often don’t have the training or experience to make such valuations. In these cases, the services of outside specialists may be necessary. To avoid the impairment of the auditor’s independence, in some situations, the auditor’s valuation of intangibles may be supervised and approved by client personnel with suitable skill, knowledge and experience.

These materials first consider the accounting standards that affect auditing procedures for goodwill, intangibles and deferred charges. Designing and documenting auditing procedures to verify applicable financial statement assertions will comprise the remainder of the text.

Learning Objectives:

Upon successful completion of this course, participants will be able to:

• Understand the basic procedures for auditing goodwill, intangibles, and deferred charges
• Understand the affects of accounting standards on auditing procedures
• Learn ways to audit goodwill, intangibles and deferred charges more efficiently
• Design and prepare the most efficient documentation to goodwill, intangibles, and deferred charges auditing procedures