To verify patents in the financial statements of Tamale Pharma, the auditor would:

Examine Patent Documentation: Review the patent documents to verify ownership and the cost associated with the acquisition.
Check Patent Register: Ensure that a register of patents is maintained, detailing descriptions, costs, and net book values of the patents. Test a sample of patents from the register against the patent documentation.
Review Additions: For any additions during the year, verify the purchase documentation, such as board minutes or senior management approval, if applicable.
Amortization: Ensure that patents are amortized over their useful life, and recalculate the amortization for accuracy.
Impairment Consideration: Consider whether there are any circumstances that might require an impairment write-off of the patents and ensure any impairment has been correctly recorded.
(3.5 marks)

To verify research and development (R&D) costs in the financial statements of Tamale Pharma, the auditor would:

Verify Supporting Documentation: Examine supporting documents such as invoices and timesheets to ensure that only development costs are capitalized, and they meet the criteria specified in IAS 38.
Compliance with IAS 38 Criteria: Confirm that the development costs capitalized meet the IAS 38 criteria, including:
Probable economic benefits.
Intention to complete the asset.
Availability of resources to complete the project.
Ability to use or sell the asset.
Technical feasibility.
Reliable measurement of expenditure.
Project Evaluation Reports: Review project evaluation reports and consider consulting an independent expert for highly technical information.
Non-Current Assets Used: Verify that any non-current assets used in research and development have been properly capitalized and depreciated according to IAS 16.
(3.5 marks)