Substantive procedures for research and development

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).