It is a bitter fact that most organizations experience a difficult time managing fixed assets since they don’t know their exact locations and what conditions they are in. Because of this, organizations often discover that their fixed assets are somewhere else or missing when they perform physical asset verification. For this reason, periodic physical verification…
Physical verification of fixed assets is an abstract process that has a physical base. However, it so happens that this is an activity that is not preferred by companies, it is rather one that they shy away from because it requires thoroughness and a lot of dedication. There is nothing more wrong than that. The…
Any natural or legal person having the quality of trader must check, at least once a year, the existence and the value of the elements of the heritage assigned to the professional activity. But the physical inventory is also an indicator of the quality of the company’s processes. The obligation to take a physical inventory…
Even though the physical verification of fixed assets may take some time for high asset-based enterprises to complete for the first time, the benefits of a controlled environment and effective resource allocation could be enormous. Fixed assets can be physically verified by a corporation either internally or by appointing a specialized outside organization. Below is the procedure for…
Even when the management of fixed assets is done through specific software, they are sometimes so numerous and so old that a company requires a Physical Verification of Assets. Which business owner has never asked his manager to confirm the existence of an asset, a telephone for example, at the time of its replacement to learn…
When conducting Physical Verification of Fixed Assets to ensure that the organization owns the fixed assets listed in the balance sheet and the organization’s rights to fixed assets are confirmed and not limited by the rights of third parties, the auditor should analyse the documents confirming the organization’s rights to fixed assets. Such documents include contracts for…
