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

Business risk analysis, Business Risk Analysis Business risk can be ana...

Business Risk Analysis Business risk can be analyzed between external and internal risks: External risks: Changing legislation (e.g. minimum wage) Changing inter

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

Statutory Auditing - Newspaper agencies, Provide the data regarding all abo...

Provide the data regarding all about auditing of Newspaper agencies

Research and development - audit process, Research and Development - Audit ...

Research and Development - Audit Process The past of business is littered along with cases of companies which have collapsed as a convulsion of over indulgence in discover and

Co-operative societies, Co-operative Societies An audit in this case is...

Co-operative Societies An audit in this case is carried out as a normal audit except you should note that the auditor is appointed by the Commissioner of Co-operatives and alth

What is transferred basis, Q. What is Transferred Basis? Transferred Ba...

Q. What is Transferred Basis? Transferred Basis - A transferred basis is the foundation of property in the hands of a transferor, donor or GRANTOR. In this sense a prior owner'

Inter-related components of internal control, Part A: What are the five...

Part A: What are the five inter-related components of internal control? Briefly discuss them. Part B: A file maintained by the Accounts Department for one of Sharp's s

Audit function, Audit Function The audit functions as follows as: 1...

Audit Function The audit functions as follows as: 1. To verify the estimation of timing differences; 2. To ensure such permanent differences have not been got into accou

Share capital - audit process, Share Capital - Audit Process Share cap...

Share Capital - Audit Process Share capital is a special type of liability and when it has been issued during the year then verification procedures are as follows: 1. Confirm

Recognize the related parties, Recognize the Related Parties The audit...

Recognize the Related Parties The auditor should review information provided through the management and directors recognize the names of all identified related parties and sho

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