# Audit of Intangible Assets
An intangible asset is an identifiable non-monetary asset without physical substance (e.g., software, patents, trademarks, licences). Auditing intangibles is challenging because there is nothing physical to count.
## Existence — Special Considerations
Since physical inspection is impossible, the auditor focuses on active use:
- Verify whether the intangible asset is in active use for:
- Production or supply of goods or services
- Rental to others, OR
- Administrative purposes.
- If not in active use, ensure:
- Deletion has been recorded in the books of account, AND
- Amortization charge has ceased beyond the date of deletion (or impairment has been recognised).
## Completeness, Valuation, Rights & Obligations
Same procedures as for PPE:
- Movement schedule (opening + additions − deletions = closing).
- Verify recognition criteria are met (identifiability, control, future benefits, reliable measurement).
- Check amortization method reflects consumption pattern.
- Verify impairment assessment.
- Verify legal ownership (e.g., patent registration certificates, software licences, trademark registrations).
## Intangible Assets Under Development
The disclosure framework mirrors CWIP for PPE:
- An ageing schedule with buckets <1Y, 1–2Y, 2–3Y, >3Y, split between 'Projects in progress' and 'Projects temporarily suspended'.
- A completion schedule for projects that are overdue or over budget.