The auditor should evaluate future economic benefit by relating assets to revenues produced by them.

He should also inquire of management and legal counsel as to possible contingencies relating to
intangible assets.

The auditors should apply procedures to Reasearch and Development expense by company with those
of prior year and budgeted amounts as part of the audit of intangible assets, this should be done to
determine the reasonableness of the account balances. These may also identify improperly recorded
purchases and write-off of intangible assets as well as erroneous recording of amortization of intangible
assets.

1. Obtain an analysis of ledger accounts for intangibles. - Existence

2. Examine documentation. - Existence

3. Vouch addition to or acquisitions during the year. - Completeness

4. Evaluate dispositions and write-off during the year.- Completeness

Amortization refers to capitalizing the value of an intangible asset over time. This is to consider
amortization to be the cost of an asset as it is consumed or used up while generating sales for a
company, that is why it is important to have an accurate amortization within the FS.