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In testing acquisitions the auditor needs to understand the appropriate accounting guidance related ...

In testing acquisitions the auditor needs to understand the appropriate accounting guidance related to acquisition accounting. Which of the following is not an accounting consideration for the auditor as regards to acquisition cost?

▸ inclusion of material transportation and installation costs

▸ recording of trade-in costs

▸ allocating costs when building and equipment are purchased at one price

▸ verifying that purchased equipment amounts correspond to the budgeted amount

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Auditing and Assurance Services

Edition: 17^th

Authors: Arens, Elder, Beasley, Hogan

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