In case any intangible asset is not in active use by the entity, the auditor should check whether: -

CA Intermediate · Auditing and Ethics · PYQS · January 2025
In case any intangible asset is not in active use by the entity, the auditor should check whether: -
(A) (A) The deletion with respect to the intangible asset has been recorded in the books of accounts post-approval by the entity's management.
(B) (B) The amortization charge has ceased beyond the date of deletion.
(C) (C) The deletion with respect to the intangible asset has been recorded in the books of accounts post-approval by the entity's management and the amortization charge shall be continued.
(D) (D) The deletion with respect to the intangible asset has been recorded in the books of accounts post-approval by the entity's management and the amortisation charge has ceased beyond the date of deletion.

Suggested Answer and Working Notes:

Correct Answer: Option (D)

(D) The deletion with respect to the intangible asset has been recorded in the books of accounts post-approval by the entity's management and the amortisation charge has ceased beyond the date of deletion.

Topics: Audit of Items of Financial Statements

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