During the course of an audit, the auditor stumbled upon a balance of Rs.12,500 in the Goodwill A/c and ascertained that it had not been written off over a long period. What may the auditor do with it?

Question

TuteeHUB · Accepted Answer

Hide it from the management

TuteeHUB · Answer

Advise the concern to write it off

TuteeHUB · Answer

Insist that it be written off the same year

TuteeHUB · Answer

Recommend to the concern that it be written off over a period of five years

1.	During the course of an audit, the auditor stumbled upon a balance of Rs.12,500 in the Goodwill A/c and ascertained that it had not been written off over a long period. What may the auditor do with it?
A.	Advise the concern to write it off
B.	Hide it from the management
C.	Insist that it be written off the same year
D.	Recommend to the concern that it be written off over a period of five years
Answer» B. Hide it from the management

During the course of an audit, the auditor stumbled upon a balance of Rs.12,500 in the Goodwill A/c and ascertained that it had not been written off over a long period. What may the auditor do with it?

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