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Fixed Assets Audit Services for Accurate Asset Records and Verification

Fixed Assets Audit helps businesses verify their fixed asset records, ownership details, physical existence, valuation, depreciation, and accounting treatment. It is useful for companies that maintain significant assets and want accurate records, proper reconciliation, and professional review of their asset register.

Whats Included
  • ✓ Physical verification of assets, where applicable
  • ✓ Review of asset additions, disposals and depreciation
  • ✓ Fixed asset audit observations and reporting

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Fixed Assets Audit

Fixed Assets Audit Services for Accurate Asset Records and Verification

Fixed assets are the long-term, tangible resources that a business uses to create goods or services rather than holding them for resale. These are perhaps the most critical for stability and growth in any business. Here are some examples:



Buildings and Furniture


Machine and Equipment


Computer


Cars



Physical verification and valuation of a class of assets for accuracy of reporting and compliance with accepted accounting standards is termed as Fixed Assets A...

Fixed assets are the long-term, tangible resources that a business uses to create goods or services rather than holding them for resale. These are perhaps the most critical for stability and growth in any business. Here are some examples:

  • Buildings and Furniture

  • Machine and Equipment

  • Computer

  • Cars

Physical verification and valuation of a class of assets for accuracy of reporting and compliance with accepted accounting standards is termed as Fixed Assets Audit.

Why My Startup Solution for Fixed Assets Audit?

We at My Startup Solution offer fixed assets audit services to businesses in Lucknow. Our experts are dedicated to providing you with the most accurate and detailed auditing solutions so that your fixed assets may be accounted for and also be in compliance with the most recent versions of regulation.

Audit Objectives

To check if the fixed asset records are maintained correctly and up to date.

  • Review of Capital Expenditure - To determine whether capital expenditures are capitalized.

  • Depreciation Verification - To check whether the calculated depreciation under the companies act, 2013 is proper, accurate and comprehensive.

  • Compliance with accounting standards - The Company will follow applicable IND AS, and disclose as applicable of the Companies Act, 2013.

Required Documents from Clients

The following shall be required documents to conduct the audit.

  • Policies and procedures in respect of fixed assets, classification and amortization.

  • The customer keeps a fixed asset register, or FAR.

  • The following are other supporting documents: quotations, purchase requisitions, purchase orders, and invoices.

  • A list of people authorized to buy or dispose of fixed assets.

  • Physical verification register of fixed assets held in the client's book.

Audit Process

  • Policy Review: All of your internal policies shall be reviewed to ensure their statutory compliance.

  • Balance Confirmation: Opening balances in Financials and Fixed Asset Register should invariably agree with the closing balance of the previous year's audited Financials.

  • FAR Analysis: The Fixed Asset Register should be complete, accurate, and compliant with the Companies Act, 2013 (CARO 2016 requirements).

  • Revaluation checks: Where revaluation is applicable the entire class of such fixed assets is duly adjusted either against Revaluation Reserve or Profit & Loss Account.

  • Physical Verification: Verify physically all fixed assets for existence, condition, and tagging. Confirm that adequate controls exist so that no unauthorized person can access the above assets.

  • Regular Auditing: There should be periodic inspections of the fixed assets based on physical evidence.

Acquisition and Disposal

  • Acquisitions: All procurements are based on the achievement of in-house policies, actual cost incurred and within budget, and documentary evidence of the process.

  • Disposals: Verify against the policies for the disposal of assets, so that in case of any profit or loss arising from the disposal, it is correctly shown and depreciation adjustments are accordingly made.

Depreciation and Disclosure

  • Depreciation Calculation: As seen above, this policy's depreciation would be calculated based on AS 10 (Revised), AS 26 and applying the same, the irregularities which exist from Schedule II of the Companies Act, 2013, would be separately stated as notes to accounts.

  • Requirements regarding Disclosure: All the fixed assets will be classified according to Schedule III of the Companies Act, 2013 and detailing gross value, accumulated depreciation, additions and disposals.

Contact Us

My Startup Solution awaits you if you are looking for reliable and effective Fixed Assets Audit services in Lucknow. We help you get the right balance of professional experience that yields accurate fixed assets with all compliance. Let's Get Connected If you have questions or wish to schedule a consultation appointment, please contact us at info@mystartupsolution.in. We would be glad to assist you in maintaining your fixed assets records clean and up-to-date in full compliance with all relevant regulations.

Fixed Assets Audit
Why register

Advantages of Fixed Assets Audit

Fixed Assets Audit helps businesses verify their fixed asset records, ownership details, physical existence, valuation, depreciation, and accounting treatment. It is useful for companies that maintain significant assets and want accurate records, proper reconciliation, and professional review of their asset register.

Accurate Asset Records

A fixed assets audit helps verify whether assets recorded in the books actually exist and whether their details, values, and locations are correctly maintained.

Identify Missing or Unused Assets

Physical verification can identify missing, damaged, obsolete, or idle assets that may require proper accounting or disposal.

Correct Depreciation

The audit helps check whether depreciation has been calculated correctly based on the asset type, useful life, and applicable accounting requirements.

Paperwork

Documents required

Documents Required for Fixed Assets Audit

✓ Fixed Asset Register: The latest asset register containing asset descriptions, purchase dates, costs, locations, identification numbers, and accumulated depreciation.
✓ Purchase Invoices: Invoices, bills, and supporting documents for assets acquired during the relevant financial period.
✓ Sale or Disposal Records: Documents relating to assets sold, scrapped, transferred, or written off during the audit period.
✓ Depreciation Schedule: Details of depreciation charged on fixed assets, including opening balances, additions, deletions, and closing balances.
✓ Asset Transfer Records: Documents supporting the movement or transfer of assets between branches, departments, or locations.
✓ Financial Statements: Relevant balance sheets, ledgers, trial balances, and other accounting records required to reconcile fixed asset balances.
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How it works

Registration process

A simple four-step process, start to finish.

1

Review of Asset Records

The audit begins with reviewing the fixed asset register, general ledger, invoices, depreciation schedules, and other supporting records.
2

Physical Verification

Recorded assets are physically checked at their respective locations to confirm their existence, condition, identification, and ownership.
3

Reconciliation and Verification

Physical verification results are compared with accounting records to identify discrepancies such as missing, unrecorded, duplicated, or incorrectly classified assets.
4

Audit Findings and Reporting

Identified discrepancies and observations are documented, and appropriate recommendations are provided for correcting asset records and improving fixed asset controls.

Frequently asked questions

A Fixed Assets Audit helps businesses identify missing, duplicate, obsolete, or incorrectly recorded assets. It also supports reconciliation between the fixed asset register and accounting records, helping management maintain more accurate and organised asset information.

Depending on the agreed scope, the review may cover land, buildings, plant and machinery, vehicles, furniture, computers, office equipment, electrical installations, and other tangible assets recorded as fixed assets in the business's accounting records.

Physical verification can be included when it forms part of the agreed scope. Assets may be checked against the fixed asset register based on descriptions, identification details, locations, and other available records to identify discrepancies.

Common documents include the fixed asset register, general ledger, purchase invoices, depreciation schedules, capital expenditure records, disposal documents, ownership records, and asset location details. The exact documents depend on the scope and nature of the engagement.

Yes. As part of the agreed review, depreciation records can be examined for consistency with the accounting policies and applicable requirements, including asset classification, useful lives, depreciation periods, additions, and disposals.

Businesses with significant fixed assets, multiple operating locations, frequent asset purchases or disposals, or differences between their asset register and accounting records may benefit from a structured fixed asset review. The scope should be based on their specific requirements.
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