Fixed Asset Verification
Physical verification of assets is a process conducted to ensure that the assets of an entity actually exist. It is vital for every business to carry out this process at suitable intervals, preferably once every year. Our approach to physical verification is to conduct an item-wise reconciliation of fixed assets against your fixed asset register.
Objective of Physical Verification of Assets:
1. It is a statutory compliance as per CARO 2016
2. Ensures existence of assets of an entity
3. Rectification of any accounting discrepancy
4. To manage internal compliance of the entity
5. Critical for continuous customer service
Process of Physical Verification of Assets:
This requires objective assessment of ledger contents and internal controls that support asset management.
1. Consolidate FAR for all sites and assets / inventories
2. Perform reconciliation between physical count and book count
3. Comparison of serial numbers on asset tag and FAR
4. Comparison of manufacturer model numbers, description, location and department are taken into consideration.
5. Identification of retired assets, missing assets and damaged assets.
6. Identification of grouped assets to the individual assets (computer equipment, furniture, manufacturing equipment, etc.)
7. Follow-up visits as necessary to verify any residual assets and / or gather additional information
8. Update the condition of assets if required
9. Updating the fixed asset register as necessary
10. Provide Physical Verification Report
Our fixed asset verification reports or physical verification reports are prepared in a proprietary templates, generated through our fixed asset management software. The physical verification report could then be shared in both word and excel formats.
How are we different?
We recommend and use ASSETCOMPLY fixed asset management software, which can accomplish the task in the following three steps.