1. Acquisitions, dispositions and write offs of intangible assets should be properly authorized.
2. Adequacy and consistency of accounting policies governing intangible assets should be reviewed periodically.
3. General ledger account should be supported by adequate detailed records and they should be periodically reconciled.
4. Schedules of intangibles showing their cost and basis of amortization should be prepared periodically and reviewed by a responsible official.
Substantive Audit Procedures
Existence: Recorded intangible assets exist
1. Obtain an analysis of ledger accounts for intangible assets.
2. Examine documentation supporting intangible assets.
Completeness: All intangible assets are recorded
3. Vouch additions to or acquisitions during the year.
4. Evaluate dispositions and write offs during the year.
Rights and obligations: Intangible assets are owned by the entity
5. Examine documentation supporting intangible assets.
Valuation and allocation: Intangible assets are valued in accordance with GAAP
6. Vouch additions to or acquisitions during the year.
7. Evaluate dispositions and write offs during the year.
8. Evaluate amortization policy and verify computation of amortization.
Presentation and disclosure: Intangible assets are classified and disclosed in accordance with GAAP
9. Review financial statements and perform analytical procedures to determine whether accounts are classified and disclosed in the financial statements in accordance with GAAP.