Intermediate Audit Staff Training: Auditing Intangible Assets

Author: Robert K Minniti

This intermediate level course provides audit professionals with the skills needed to evaluate and audit intangible assets—one of the most judgment intensive and risk prone areas of financial reporting. Participants will learn how to assess recognition, measurement, valuation, and impairment considerations for intangible assets including goodwill, trademarks, patents, internally developed software, customer relationships, and acquired intangibles.

The course emphasizes identifying risks of material misstatement, evaluating management’s assumptions, and testing valuation methodologies such as relief from royalty, excess earnings, and replacement cost approaches. Participants will gain practical guidance on reviewing specialist reports, assessing model inputs (discount rates, economic lives, cash flow projections, royalty rates), evaluating impairment indicators, and auditing purchase price allocations in business combinations.

Real world examples, fraud red flags, and documentation best practices are incorporated to strengthen audit quality, professional skepticism, and compliance with U.S. GAAS and PCAOB standards.

Publication Date: May 2026

Designed For
This course is designed for audit professionals responsible for evaluating complex accounting estimates and higher‑risk financial statement areas.

Topics Covered

• Overview of intangible assets and common audit risks
• U.S. GAAP requirements for recognition, measurement, amortization, and impairment
• Valuation methods: relief‑from‑royalty, multi‑period excess earnings, replacement cost approaches
• Testing management’s models, assumptions, and sources of evidence
• Evaluating goodwill impairment indicators and annual testing
• Auditing internally developed software and R&D‑related intangible assets
• Working with valuation specialists and reviewing specialist reports
• Fraud risks and red flags in intangible asset valuations
• Documentation expectations and common audit pitfalls

Learning Objectives

• Identify the types of intangible assets commonly reported in financial statements and their associated risks
• Apply U.S. GAAP accounting and disclosure requirements related to recognition, measurement, amortization, and impairment of intangible assets
• Identify risks of material misstatement related to valuation, impairment, and management bias
• Evaluate management’s valuation methodologies and assumptions, including cash‑flow forecasts, growth rates, discount rates, and royalty rates
• Determine when and how to rely on valuation specialists and how to evaluate the sufficiency of their work
• Design and perform substantive and analytical audit procedures responsive to identified risks
• Identify red flags for fraud, manipulation, or bias in intangible asset reporting and impairment analysis

Level
Intermediate

Instructional Method
Self-Study

NASBA Field of Study
Auditing (2 hours)

Program Prerequisites
Basic understanding of auditing

Advance Preparation
None