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:
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.
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:
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.
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:
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.
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:
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.
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.
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.