Any organization, no matter of size or industry, knowing how to audit the fixed audits can help to reduce duplication and waste, theft and the loss; track depreciation accurately; and eliminate fraud, among other noted benefits.

Here are the  Benefits of an Asset Audit

Knowing about audit  of fixed assets and routinely conducting those audits helps to confirm the following:

  • The physical existence of asset
  • classification of Assets.
  • Location of  asset
  • Date of  asset purchase
  • Original cost of the asset
  • Proper labeling of asset with its assigned asset barcode/ID number
  • That  asset  in good working condition
  • Quantities of  fixed asset
  • Controls to prevent unauthorized access to the fixed assets
  • If revalued, details of the  revaluation
  • Rate of depreciation
  • Accumulated depreciation
  • Depreciation for  current year
  • Particulars about the scrap 

A fixed asset audit  is a systematic process used by the  organizations to verify  existence, condition, location, and value of fixed assets.

Fixed assets are long-term,  assets that any business or organization owns and uses to generate their income.

Thesetype of  assets typically include items like buildings, machinery, equipment,land, vehicles,  and office furnishings.

Step-by-step guide on how to conduct  ixed asset audit:

1. Planning:

2. Asset Register Review:
.3. Physical Verification
4. Asset Tagging  Labeling

5. Data Collection
6. Valuation

7. Reconciliation
8. Documentation
9. Reporting
10. Corrective Actions
11. Monitoring and Compliance
Fixed asset audit helps an organization to  maintain accurate financial records, reduce risk of asset loss or theft, and also improve financial transparency and compliance with the accounting and tax regulations. It is  critical process for maintaining  integrity of an organization’s financial  and asset management

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