The main objective of the audit is to take over a compliance check of assets listed in the Fixed Asset Register against those assets in existence.
Other objectives of physical verification of assets are as follows:
- To ensure that the fixed assets figure include all those owned by the organization and to ensure that they physically exist;
- To ensure those fixed assets purchased are included and those sold are excluded;
- To ensure that the values stated are correct and based on either cost less depreciation or revaluation;
- To ensure the organization owns the assets detailed in the fixed asset schedule and included on the balance sheet, or if leased they have the right of its ownership and
- To ensure all the fixed assets are shown in the financial statements so that any relevant user would have a clear understanding of the financial position.
We help organizations in the process of fixed assets management, a process that seeks to track fixed assets for the purpose of financial accounting, preventive maintenance and theft deterrence. One of the major challenges that are faced by the companies is to have a regular verification of the Fixed Assets owned by them. At times when, the management is not sure of the existence of all the Fixed Assets that are reflected in records, the only answer is to conduct exhaustive fixed assets and inventory verification exercise. We help organizations to carry out fixed assets and inventory verification. We render services in the following areas:
- Preparation and maintenance of fixed asset register.
- Identification & Physical verification of assets to match the physical records with the book records.
- Calculate the depreciation as per statutory requirements.
- Suggest capitalization of fixed assets on periodical intervals and inventory reconciliation.
- Tagging and bar coding of fixed assets for easy identification of assets.
- Implementing Internal Controls systems over expenditure on fixed assets.