Audit procedures -research and development , Auditing

Assignment Help:

Audit Procedures -Research and Development

The auditor should ensure that:

a) Any costs incurred in the buy of fixed assets in order to give facilities for development and research over a number of accounting years are to be written and capitalized off over their needful lives.

b) Expenditure on research has to be written off as it is incurred.

c) Development expenditure has be written off as it is incurred except also in the very unique circumstances mentioned above.  Whether development costs are as defined, they should be amortized on the basis of sales or need of the process or product.  The amount deferred must be reviewed each year and whether there are any worries as to its recoverability, whether it should be written off immediately.  Research and development once written off expenditure must not be reinstated.

d) Movements and balances of deferred development costs must be fully disclosed in the accounts as a separate item and not included in current assets.  The accounting policy adopted must be fully explained.  The movements such need to be disclosed are: the balance on the start of the year, additional expenditure during the year, less expenditure written off during the year and the amount carried forward.

 


Related Discussions:- Audit procedures -research and development

How can scope of internal audit help you, Internal audit is an independent ...

Internal audit is an independent assessment function which is recognized by the management of an company for the review of its internal control system as a service to the company.

Individual assignment, The following situations may or may not breach the e...

The following situations may or may not breach the ethical requirements of APES 110. You need to state whether they are or are not a breach of the ethical requirements of APES110 a

Records kept by auditor, Records kept by AUDITOR of procedures applied, tes...

Records kept by AUDITOR of procedures applied, tests performed, the information obtained and pertinent conclusions reached in the course of the AUDIT. (2) Any records developed by

Non current assets or fixed assets, Non Current Assets or Fixed Assets ...

Non Current Assets or Fixed Assets In usual countries, not current assets are commonly classified like: a) Intangible assets Patents Licences Developme

Evaluate the audit risk faced by each department, Problem: You are an a...

Problem: You are an auditor of a company which operates three large departmental stores at Grand Bay, Port Louis and Tamarin. You are preparing your audit plan and you are p

Reporting to the members-fraud suspection, Reporting to the members Exc...

Reporting to the members Except the faults and irregularities outcome in the accounts not giving an accurate and fair view, or do not conform to statute, or appropriate books h

Beneficial ownership - audit process, Beneficial Ownership - Audit Process ...

Beneficial Ownership - Audit Process We have to examine documents of title as e.g. title motor vehicles, deeds and log books.  Whether there are no implied ownership can suffi

Audit reports - going concern, Audit Reports - Going Concern In the va...

Audit Reports - Going Concern In the vast widely of cases, the going to relate assumption is suitable and whether applied no mention require be made in the auditor's report.

Dealings with directors and other parties, Dealings with Directors and Othe...

Dealings with Directors and Other Parties - Sundry Debtors and Loans Dealings along with directors and other related parties: The auditor's duties are follows as: i. The revi

Advantages of fixed assets register, Advantages of Fixed Assets Register ...

Advantages of Fixed Assets Register There are several advantages if the register properly maintained: a) There is an independent record of all fixed assets showing particul

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd