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Audit substantive procedures for development cost.

The following are substantive procedures for auditing development cost:

  • Ensure that criteria required by IAS 38 to recognize development cost as intangible asset has been met
  • Discuss the feasibility of project with management i.e
  1. review projects and forecasts
  2. production and marketing plans 
  3. obtain representation from management regarding intention to complete the project
  • For sample of costs, inspect supporting documents e.g development contracts, billings and time sheets.
  • Test control over documentation and safekeeping of scientist notes, discoveries and conclusions.



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