How Does The Auditor Checks With The Patents And Trademarks Of A Company?

When a Crypto Code business company flourishes, they automatically gain some patent rights on their exclusive products. It is the duty of an Auditor to evaluate these respective accounts at the end of the year.

Here are some of the procedures an Auditor should follow in this context.

  1. With respect to Patent and Trademarks.
  • An Auditor has to verify the ownership titles of patent rights and has to inspect the certificate granted on this patent by the concerned authority.
  • Further, if the case includes purchasing of the patent from another party, then the related agreements surrendered in favor of the current client should be thoroughly examined.
  • If a company owns more than a single patent ownership, then a scheduled must be maintained to verify all these with reference to the complete details given and also in reference to the account register managed by the client.
  • All the patents should be renewed after the allowed time course and any changes if made should be noted by the owner. In fact, these records must be made alive and legally enforceable. Moreover, all the renewal fees paid on the corresponding due dates must be neatly recorded in the revenue account. If possible, all the receipts received on this regard must be examined to ensure no lapse of the patent.
  • It is the duty of the Auditor to verify whether all the patents are completely registered in the name of clients only.
  • All the charges of the patent have to be fully written off if its useful life scheme is almost over.
  • Additionally, if the patent on a particular product is being an acquired from another party, the amount paid to meet the expense as well as other related costs needs to be truly capitalized. Contrary to this, if the patent is the result of hourly hard work on laboratory and research experiments of the clients, then the exact expense incurred for the developing process only needs to be capitalized.
  1. Regarding Copyrights owned.
  • All the handwritten and printed agreement of the registered assignment along with the payment done to the authors has to noted and verified by the auditor.
  • All the copyright details must be shown in the business balance sheets.
  • The value of these copyrights is mainly dependent on the revaluation basis and its respective period of existence.
  • If the approved copyrights do not allow the sale of any specific book, then it should be strictly written off in the same year. An auditor has to verify the same in detail.