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The main issue is auditing fhe decision to capitalise/write off.
To capitalise:
The expenditure must be clearly identified (trace to invoices and ensure the amounts have gone to specific projects)
The development must be technically feasible (inspect reports and talk to developers; inspect prototypes; inspect board minutes.).
The company must have the financial resources to complete development (inspect budgets and cash flows).
The project must result in a revenue stream and profit (inspect budgets, talk to sales people, inspect board minutes etc).
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