Asset Audit and Verification
An accurate fixed asset register is critical to effective asset management and to allow you to meet your financial reporting requirements and Director's responsibilities.
An accurate asset register should satisfy the following criteria:
If you are concerned that your asset registers don't meet these criteria it may be prudent to undertake an asset audit and verification project.
An independent asset audit and verification exercise will check the register against these criteria and update as required.
Depending upon the complexity of your registers and materiality of P,P&E on your balance sheet, we recommend periodic reviews be undertaken at least every five years.
Implementing a regular asset audit and verification program will assist greatly with both internal and external audits.
Simply contact us to begin the process to improved asset management.
An accurate asset register should satisfy the following criteria:
- Assets on the register actually exist
- All material physical assets are actually recorded on the register
- Assets are recorded at the appropriate level of componentisation
- Descriptions are clear and allow easy identification of assets
- Asset lives and depreciation rates are appropriate
- Carrying values are not overstated (impairment test)
- Assets are properly classified as operational or non-operational
- Location and cost center fields are up-to-date
If you are concerned that your asset registers don't meet these criteria it may be prudent to undertake an asset audit and verification project.
An independent asset audit and verification exercise will check the register against these criteria and update as required.
Depending upon the complexity of your registers and materiality of P,P&E on your balance sheet, we recommend periodic reviews be undertaken at least every five years.
Implementing a regular asset audit and verification program will assist greatly with both internal and external audits.
Simply contact us to begin the process to improved asset management.