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Substantive procedures of hyacinth co’s research and development.
1) Obtain a schedule of intangible assets, cast and agree the closing balances with general ledger, trial balance and financial statement.
2) Discuss with management the detail of each 3 new computing software project along with the stage of development and whether it has been capitalized or expensed.
3) assess the basis for management estimated 4 years useful life of intangible assets by comparing it with historical data to reflect the expected benefit from the intangible assets.
4) Recalculate the amortization charge for the intangible assets to verify it is correctly calculated on a straight line basis over a period of 4 years and is inline with IAS 38.
5) Review the disclosure of intangible assets in the draft financial statement to verify it is in accordance with IAS 38.
are my procedures correct and competent to be able to score 5 out of 5 or i need some further improvement?
Welcome to my forum – if you have any technical queries, I will be happy to answer them.
Please see this post for a relevant resource https://opentuition.com/topic/substantive-procedures-to-obtain-evidence-in-relation-to-revenue-of-a-company
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