How do you verify fixed assets?

Question

Accepted Answer

Verification of fixed assets involves confirming their existence, condition, and valuation through various audit procedures.

Conduct physical inspections to confirm the existence of assets, e.g., checking machinery on-site.
Review purchase documents and invoices to verify ownership and valuation, e.g., examining asset acquisition records.
Assess the condition and functionality of assets, e.g., testing equipment to ensure it operates as intended.
Evaluate depreciation methods and calculations to ensure they align with accounting policies, e.g., reviewing depreciation schedules.
Check for any impairment indicators that may affect asset valuation, e.g., assessing market conditions for real estate.

Accepted Answer

1.Firstly physically verify the fixed assets will cross verified with fixed asset register
2.Method of depreciation following & consistency has been verified 
3. Following assertions will be followed
  a. Existence- by physically verification
  b. Rights and obligations - whether having         ownership rights over such assets
 c. Valuation - method of valuation & depreciation methods
 d. Presentation - As per schedule 3 
e. Disclosures - As per Ind As 16 property, plant & equipment
f. Completeness - test of details of additions & deletions with fixed assets register

Accepted Answer

Verify wheather the fixed asset is in the name of the company. Verify wheather the fixed asset is with company.
Verify wheather there are any major repairs to the machinery which increases the capacity. If yes accounting for accordingly.

Asked in Abhishek Nahar & Associates and 4 others

How do you verify fixed assets?

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