Auditing Intangible Assets and Evaluating Fair Market Value - The Case of Reacquired Franchise Rights

18 Pages Posted: 11 Nov 2007 Last revised: 20 Jan 2011

See all articles by Mark J. Kohlbeck

Mark J. Kohlbeck

Florida Atlantic University - School of Accounting

Jeffrey R. Cohen

Boston College - Department of Accounting

Lori Holder-Webb

Western New England University - Department of Accounting and Finance

Date Written: February 1, 2009

Abstract

The Roman Holiday Pizza Paradise case provides an audit setting that requires students to understand and perform procedures related to the audit of a fair value estimate in connection with the impairment of an unusual intangible asset, reacquired franchise rights, in the pizza restaurant industry. The case focuses on one key aspect - auditing fair market values - a concept that is increasing in importance as financial accounting standards evolve and requires a significant level of auditor judgment. Planning activities as well as performance of year-end auditing procedures are included in this self-contained module that incorporates client interaction and obtained external evidence.

Keywords: auditing, fair market value, intangible assets, AS 5, teaching

JEL Classification: M49, M41, M44

Suggested Citation

Kohlbeck, Mark J. and Cohen, Jeffrey R. and Holder-Webb, Lori, Auditing Intangible Assets and Evaluating Fair Market Value - The Case of Reacquired Franchise Rights (February 1, 2009). Issues in Accounting Education, Vol. 24, No. 1, 2009. Available at SSRN: https://ssrn.com/abstract=1028721

Mark J. Kohlbeck

Florida Atlantic University - School of Accounting ( email )

777 Glades Avenue
KH 119
Boca Raton, FL 33431-0991
United States
561-297-1363 (Phone)

Jeffrey R. Cohen (Contact Author)

Boston College - Department of Accounting ( email )

Carroll School of Management
140 Commonwealth Avenue
Chestnut Hill, MA 02467
United States
617-552-3165 (Phone)
617-552-2097 (Fax)

Lori Holder-Webb

Western New England University - Department of Accounting and Finance ( email )

United States

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