(c) Describe the audit procedures you should perform. to determine the validity of the amortisation rate of five
years being applied to development costs in relation to Plummet. (5 marks)
正确答案：
(c)Auditprocedurestodeterminethevalidityoftheamortisationrateoffiveyearsbeingappliedtodevelopmentcostsinrelation
totheproductPlummetwouldincludethefollowing:
–ObtainthepapersdocumentingmarketresearchcarriedoutonPlummetReviewandascertainthatthemarketresearch
supportsaproductlifespanoffiveyears
–ReviewactualsalespatternssincethelaunchofPlummetandcomparetothepredictedsalesperthemarketresearch
document
Tutorialnote:thiswillhelptodemonstratetheaccuracyofthepredictedsalesforecastofPlummet
–Readtheassumptionsunderpinningthemarketresearchsalesprojectionsandconsiderwhethertheseassumptions
agreewiththeauditors’understandingofthebusiness
–Discusssalestrendswiththesales\/marketingdirectorsandascertainwhethersalesareinlinewithmanagement’s
expectations
–ReadcorrespondencewithretailoutletstoensurethereiscontinuedsupportforsellingPlummet
–Obtainmarketing\/advertisingbudgetsandascertainenoughexpenditureiscontinuingonPlummettosupportcontinued
sales
