Question 16 1 pts During your planning meeting with the finance director of Cardiff Co which is a pharmaceutical company, to update your knowledge of the entity, you are informed that no new products have been introduced although development has started on a new product which is due to be launched in 12 months' time with all costs being capitalised. Which of the following describes a valid audit risk? O Development costs will be overstated if Cardiff Co does not have the funds to complete the development O Development costs are overstated as such costs must be expensed as incurred O Development costs will be overstated if Cardiff Co have the funds to complete the development O Development costs will be overstated if Cardiff Co is not amortising the development costs over the useful economic life of the product