A Fixed Asset Tagging is the physical verification of assets conducted by auditors to make sure that the assets of a company actually exist. It is of immense importance for every company 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. In order to serve in remote locations, we have a special team adjustable to local location.
Objective of Physical Verification of Assets:
- Compliance with statutory requirement
- Verification of “existence” assertion of Assets
- Verification of “Valuation” assertion of Accounting for any discrepancy
- Critical for Continuous Customer Service
- Internal Compliances relating to physical assets management
Physical verification requires objective assessment of ledgers contents and internal control of business. The process includes:
- Manual as well automated comparison of manufacturer models’ numbers
- Comparison of serial numbers and assets tags.
- Comparison of available additional information such as location, description and department are taken into consideration.
- Additional effort to address potential matches by manufacturer, description, serial number and model that may appear elsewhere in record entry.
- Grouped assets and bulk entries are allocated to the individual assets (Furniture, manufacturing equipment, computer equipment etc.).
- Conducting follow-up visit with departments to verify any residual assets and /or gather additional information.
An audit trial is created on consistent basis and reconciled inventory is linked with the existing fixed asset accounting record.
At the end of the whole process, we provide audit trial and several specific reconciliation reports including the following:
Matched assets– Items found during the inventory process and traced to the fixed asset accounting record.
Unrecorded additions– items found during the inventory process but not found in the fixed asset accounting record
Unrecorded retirements– items found in the fixed asset accounting record but not found during inventory process.