You are the audit senior with Howard & Associates and have been assigned to the audit of Beautiful Hair Ltd (Beautiful Hair). In early 2019, Beautiful Hair acquired a small manufacturer of high-quality organic hair-styling products, Shimmer Pty Ltd (Shimmer). Beautiful Hairs management had identified that Shimmers line of products would fit extremely well with the Beautiful Hair business, and organized funding for the acquisition from Regional Bank. Shimmer uses special formulas to create its product. Only the owner of Shimmer knows the secret ingredients for the formulas. These secret ingredients are apparently documented and held by Shimmers solicitors. Beautiful Hairs management has been advised that the intellectual property related to the formulas has the potential to be both a material and valuable asset and has been recognized as an intangible asset arising from the acquisition in accordance with accounting standard AASB 3.

(b) Identify and describe a substantive audit procedure that you could perform in response to each risk identified above