Avoid risks, conduct a physical verification of assets today
Physical verification of assets is a process conducted by auditors to make sure that the assets of an entity actually exist. It is of immense importance for every business to carry out this process at the end of every financial year. Our approach to verification is to conduct a line-by-line reconciliation of fixed assets accounting records to assets found during the physical inventory taking process. We have a team of associates and supervisors to work on permanent account number (PAN) India & international basis. In order to serve in remote locations, we have a special team adjustable to local language and location.
Objective of Physical Verification of Assets:
- It is a statutory compliance as per CARO 2016
- Ensures existence of assets of an entity
- Facilitates valuation and rectification for any accounting discrepancy
- To manage internal compliances of the entity
- Critical for continuous customer service
This requires objective assessment of ledger contents and internal controls that support asset management. The process includes:
- Automated comparison of asset tag and serial numbers.
- Automated and manual comparison of manufacturer model numbers.
- Comparison of additional available information such as description, location and department are taken into consideration.
- An effort to address potential matches by description, manufacturer, model and serial number that may appear elsewhere in each record entry.
- Allocation of bulk entries and grouped assets to the individual assets (computer equipment, furniture, manufacturing equipment, etc.)
- Follow-up visits as necessary to verify any residual assets and / or gather additional information.
- Creation of audit trail for linking the reconciled inventory file with the existing fixed asset accounting records.
At the closure of the verification, we provide an audit trail in an excel spreadsheet along with several specific reconciliation reports such as matched assets, unrecorded additions and unrecorded retirements.
Our team of experts will:
- Consolidate physical report for all sites and assets / inventories
- Perform reconciliation between physical count and book count
- Compute difference and identifying the reasons
- Executive Summary (signed off by Technical, SCM, Finance, MAS)
- Provide Physical Verification Report
- Physical Verification of Inventory