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
- review projects and forecasts
- production and marketing plans
- 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.