Verification

Our team at Levantare specializes in conducting comprehensive and reliable fixed assets physical audits to help organizations to ensure the accuracy and integrity of their fixed asset records.

During a fixed assets physical audit, our experienced audit executives will work closely with your organization to plan and execute the audit process efficiently and effectively. Here is a breakdown of the key steps involved:

1. Planning: We begin by understanding your organization’s specific requirements and objectives for the audit. Our team will collaborate with you to determine the scope of the audit, establish timelines, and identify the necessary resources for a seamless audit process.
2. Asset Identification: To ensure a systematic and thorough audit, we help you assign unique identification tags or numbers to each fixed asset. This allows us to track and verify the existence and location of every asset accurately.
3. Physical Verification: Our executives will physically visit your premises to conduct a detailed inspection of your fixed assets. We meticulously verify the presence, condition, and location of each asset by comparing them against the information recorded in your fixed asset register.
4. Condition Assessment: As part of the physical audit, we assess the condition of each asset, taking note of any damages, wear and tear, or maintenance requirements. This assessment provides valuable insights into the overall health and value of your fixed assets.
5. Reconciliation and Reporting: After completing the physical verification process, we reconcile the physical count of assets with the records in your fixed asset register. Any discrepancies or inconsistencies are thoroughly investigated, and a comprehensive report is prepared. This report includes detailed findings, observations, and recommendations to help you improve your asset management practices and ensure accurate financial reporting.

At Levantare, we understand the importance of accuracy and reliability when it comes to fixed asset records. Our team of audit executives brings deep expertise and a meticulous approach to every audit we conduct, ensuring that you have a clear understanding of the status and condition of your fixed assets.

Define Verification Audit

Fixed asset verification audit is a process of verifying the existence, ownership, location, and value of fixed assets of a company. This process is important to ensure that the company’s financial statements accurately reflect the value and condition of its fixed assets.

Here are the steps involved in the fixed asset verification audit process:

1. Planning: The first step in the process is to plan the audit, which involves identifying the scope of the audit, the assets to be audited, and the audit team responsible for the audit.
2. Physical verification: The next step is to physically verify the existence, location, and condition of the fixed assets. This involves inspecting the assets, taking photographs, and verifying serial numbers and other identifying features.
3. Ownership verification: After the physical verification, the auditor verifies the ownership of the assets, which involves reviewing purchase orders, invoices, and other relevant documents to ensure that the assets are owned by the company.
4. Valuation: The auditor then verifies the value of the assets, which involves comparing the recorded value of the assets with the market value or appraised value of the assets.
5. Documentation: The final step is to document the findings of the audit, which includes preparing an audit report that highlights the results of the audit, any discrepancies or issues found, and recommendations for improving the company’s fixed asset management process.

Fixed asset verification audits are essential for ensuring that the financial statements of a company are accurate and reliable, and that the company’s fixed assets are properly managed and accounted for.

Verification Audit

Fixed assets verification audit is a process of physically verifying the existence and condition of fixed assets as recorded in an organization’s fixed asset register. The verification audit is usually conducted periodically, such as annually or biennially, to ensure that the information in the fixed asset register is accurate and up-to-date.

The verification audit process involves several steps, including:

1. Planning the audit: This includes defining the scope of the audit, identifying the assets to be audited, and preparing the audit plan.
2. Conducting the audit: This involves physically verifying the assets and comparing them to the information recorded in the fixed asset register. The auditors may use barcodes, RFID tags, or other identification methods to match the physical assets with their corresponding records.
3. Identifying discrepancies: Any discrepancies between the physical assets and the fixed asset register should be noted and investigated. These discrepancies may include missing assets, assets that are no longer in use, or assets that are recorded in the register but cannot be located.
4. Resolving discrepancies: Once discrepancies are identified, steps should be taken to resolve them. This may involve updating the fixed asset register, conducting further investigations, or taking corrective actions.
5. Reporting the audit results: The results of the audit should be documented in a report and shared with management. The report should include any discrepancies identified, the actions taken to resolve them, and any recommendations for improving the fixed asset management process.

The fixed assets verification audit helps organizations ensure the accuracy of their fixed asset records, which can help prevent errors and fraud, reduce costs, and improve decision-making related to fixed asset management.

Verification Freeze

Freezing the verification audit process refers to the point where no further changes can be made to the fixed asset register until the verification audit is finalized. Finalizing the verification audit process involves the following steps:

1. Reviewing the fixed asset register and verifying that all assets have been accounted for.
2. Ensuring that all necessary adjustments have been made to the fixed asset register as a result of the verification audit.
3. Generating reports and reconciling the fixed asset register with the general ledger.
4. Obtaining approval from management to finalize the verification audit process.
5. Closing the verification audit process and updating the fixed asset register to reflect any changes made during the audit.

Once the verification audit is finalized, the fixed asset register should accurately reflect the company’s fixed assets and their current values, providing a reliable basis for financial reporting and decision-making.

Reconciliation

Fixed asset verification audit reconciliation is the process of comparing the results of a physical asset count and verification to the fixed asset register to ensure the accuracy of the information contained within it. It involves reconciling the physical asset count and the assets recorded in the fixed asset register, identifying discrepancies, and taking corrective action where necessary to ensure that the register is up-to-date and accurate.

During the verification audit reconciliation, the auditor will check for any missing assets or discrepancies between the recorded assets and the physical assets found. They will investigate any discrepancies and take steps to correct them. The audit may also involve reviewing the asset management policies and procedures to ensure that they are effective and followed by the organization.

The goal of fixed asset verification audit reconciliation is to provide an accurate record of the organization’s assets, ensuring that they are properly accounted for and managed. It helps to prevent fraud, errors, and mismanagement of assets, and provides a sound basis for decision-making regarding asset management.

Verification Close

Closing the verification audit involves finalizing the audit process and preparing a report that summarizes the findings and recommendations. This includes reviewing the results of the physical verification of assets, reconciling discrepancies, updating the fixed asset register, and addressing any issues or concerns that were identified during the audit.

Once the audit report is prepared and approved, the verification audit process can be closed by updating the fixed asset register and other relevant records. This includes making any necessary adjustments to asset values, depreciation calculations, and asset location or custodian details. The fixed asset register should also be updated to reflect the current status of each asset, including any disposals, transfers, or additions that occurred during the audit process.

Closing the verification audit also involves communicating the results of the audit to relevant stakeholders, such as management, finance teams, and auditors. This may involve presenting the audit report and recommendations, discussing any remedial actions that need to be taken, and identifying any areas for improvement in the fixed asset management process.

Custodian Verification

Custodian Verification