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

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