Chapter 1. Theoretical and methodological aspects of the audit of intangible assets

1. Aims and objectives of the audit of intangible assets

Intangible assets may be considered:

- Works of science, literature and art;

- Objects of related rights (performances, phonograms, etc.);

- Programs for computers and databases;

- The invention;

- Utility models;

- Selection achievements;

- Secrets (know-how);

- Trademarks and service marks;

- Other protected intellectual property and means of individualization.

Object is accepted accounting as intangible assets may, if the following conditions are met:

a) the object is able to bring economic benefits in the future.

This condition is satisfied if the object is intended for use in the manufacture of products, performance of works or provision of services for the management needs of the organization;

b) the organization has control over the object.

That is, the organization has security or other documents confirming the existence of the asset and the organization exclusive rights to it. These documents are, in particular, patents, certificates, contract on alienation of the exclusive rights to results of intellectual activity or means of individualization;

c) it is possible to discharge or separation (identification) of the object from other assets;

d) the object is intended to be used for a long time.

Long is the useful life of more than 12 months, or the normal operating cycle, if it exceeds 12 months;

e) the organization does not intend to sell the item within 12 months or the normal operating cycle, if it exceeds 12 months;

f) the actual (historical) cost of the object can be measured reliably;

g) the object does not material form.

Intangible assets can be considered as positive goodwill that arose on the acquisition of an enterprise as a property complex (in whole or in part).

Validation of recording intangible assets carried by the primary documents, records in the inventory cards, journals, orders, statements, registers automated accounting of these values.

The asset balance under "Intangible assets" reflect investments in enterprise intangible intellectual property: the exclusive right to acquire a patent, industrial design, utility model, trademark, selection achievements, the copyright in the program for an electronic computer, the database , property law on integrated circuit technology. Intangible assets also include goodwill and costs associated with the creation of the enterprise (organization costs). Features intangibles that many of them have no real structure material, they can be used for a long time, but the possibility of their profitability is uncertain. In the balance sheet is presented separately value of intangible assets in the original (actual or peer) assessment, as well as depreciation charges.

The main thing in the audit of intangible assets - to ensure their actual availability, proper evaluation and documentation of proper cancellation. Actual presence is established by inventory (visual observation) and become familiar with the primary documentation for posting. Since many intangible assets - intellectual property object and immaterial in nature, an important criterion for their isolation in the property is the possibility of alienability, ie possibility of transferring to another person or legal possession of the street. It is essential to the ability of an intangible asset to bring economic benefits.

Thus, the objectives of the audit of intangible assets are:

1. Forming an opinion on the financial statements for information about intangible assets;

2. Inconsistency in the current organization of the order of accounting and taxation of transactions with intangible assets.

The main tasks of the audit of intangible assets consist of the need to check out:

- Assignment of correctness to intangible assets;

- Documenting the existence of intangible assets (goodwill, organizational expenses, exclusive rights);

- The correct execution and recording of transactions on receipt and disposal of intangible assets;

- Correct valuation of intangible assets in the account;

- The correctness of the useful lives of intangible assets and depreciation;

- Completeness and accuracy of data reflections on intangible assets in the accounting and reporting.

The greatest value and authenticity of to the audit firm are external evidence, then the degree of quality and reliability should be mixed and internal evidence.

As Audit evidence must be credible and sufficient. Their sufficiency in each case determined on the basis of assessment of internal control and audit risk values​​. Sufficiency is a quantitative measure of audit evidence. To produce an objective and valid opinion auditor must gather sufficient relevant evidence. Accordingly, it is a qualitative measure [5, 73.

Accounting information must be accurate and complete, relevant and timely, adequate and useful. Initial information should be documented properly and legally executed. The main component of accounting information - this financial statements.

According to the Law of the Republic of Kazakhstan dated February 28, 2007 № 234-III «On Accounting and Financial Reporting", the financial statements present the financial position, performance and changes in financial position of organizations [6]. It includes:

1) Balance Sheet

2) a statement of income and expenditure

3) Statement of Cash Flows

4) a statement of changes in equity

5) information on the accounting policies and explanatory note.

Based on the fact that the financial statements meet the common needs of most users, it does not provide all the information that users may need to make economic decisions, since it mainly reflected the financial results of past events.

In practice holding audit depends on the state of the knowledge base - accounting. Therefore, a thorough inspection of the state of accounting as an information base audit.

When conducting an audit is necessary to study the following documents. (Table 1.1).

Table 1.1.

Forms of accounting documents constituting the information base audit.

№	Name of the document
1	Financial statements and explanatory notes subject to them: a) The consolidated annual b) annual quarterly c) quarterly
2	Cash, bank documents, notices banks, bank statements
3	Work orders, report cards, advance reports
4	Instruments of acceptance, surrender and writing off equipment and supplies, receipts and overheads for accounting inventories
5	Personal accounts: a) workers and employees b) recipients of pensions and state benefits
6	Settlement (payment and settlement) statement
7	Inventory cards and books accounting of fixed resources and material assets
8	Accounting records (general ledger, journals, orders, Worksheet)
9	Auxiliary and reference books, magazines, card files, books, registration of accounts, cash orders, powers of attorney, payment orders, cash books, turnover statements
10	Information about the fund accounting, wage limits and monitoring their distribution on Payments by overspending and wage arrears, the retention of wages, on the payment of severance, vacation benefits, for sick leave, etc.
11	Writs of execution
12	Documents (certificates, acts, liabilities, correspondence) by accounts receivable, drawback
13	Acts cash checks, correct levying taxes, etc.
14	Contracts, agreements (economic, operational, labor, etc.)
15	Acts documentary audits and audit of financial and economic activities of the organization documents (certificates, information memoranda) to them
16	Acts, statements and determining the revaluation of fixed assets depreciation
17	Treaty on material responsibility

Thus, the information is classified by the set of features. At the same importance in the audit of the financial statements is a system of economic information. Economic information must be accurate to users based on it to make good decisions. Basic information database audit is the financial statements, which must be accurate in all material respects. For the preparation and presentation of financial statements, users can get information such as information on financial position, results of operations and changes in financial position.