Audit Procedures for Non-Current Assets (8)

Question 1

Research and development costs (capitalised development)

Answer 1

Confirm that capitalised development costs conform to IAS 38 criteria by inspecting details of projects and discussions with technical managers

Question 2

Research and development costs (inspection of budgets)

Answer 2

Confirm feasibility and viability by inspection of budgets

Question 3

Research and development costs (amortisation calculation)

Answer 3

Recalculate amortisation calculation to ensure it commences with production and is reasonable

Question 4

Research and development costs (invoices verify expenditure)

Answer 4

Inspect invoices to verify expenditure incurred on R&D projects