App Based Mcq page 13 Q 40(Zonal Co), sir please explain the reason for option (a) and why not (d)?

1 answer

Ravi Staff March 13, 2019

all the options from (a) to (d) are relevant audit procedures and correct
(a) — to check capitalization & amortization of IA
(b) — Disclosure of loan
(c) — again amortization which is already covered in (a)
(d) — omission of interest cost
But now risk in intangible asset capitalization and amortization is more than risk in accounting for interest or loan so they preferred (a) and not (d)
 

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