Fixed Assets Audit
A practical starting point for assessing whether fixed assets exist, are safeguarded, correctly recorded and depreciated, and acquisitions and disposals are properly authorised.
What are we trying to establish?
Determine whether fixed assets exist, are safeguarded, correctly recorded and depreciated, and acquisitions and disposals are properly authorised.
Risks worth paying attention to
What should you request?
- Fixed asset register
- Capital expenditure approvals
- Purchase invoices and receiving records
- Asset tagging records
- Depreciation schedules
- Asset transfer records
- Disposal approvals and proceeds
- Physical verification reports
Understand the process before testing.
- Who initiates, reviews and approves transactions?
- Which duties should be separated?
- What system controls and approval limits apply?
- How are exceptions identified, approved and monitored?
- How does management know key controls actually operated?
Practical tests you can perform
Physically verify sampled assets
Obtain appropriate evidence, investigate exceptions and document your conclusion.
Trace physical assets back to the register
Obtain appropriate evidence, investigate exceptions and document your conclusion.
Test additions to approvals and invoices
Obtain appropriate evidence, investigate exceptions and document your conclusion.
Recalculate depreciation for selected assets
Obtain appropriate evidence, investigate exceptions and document your conclusion.
Review asset transfers and location changes
Obtain appropriate evidence, investigate exceptions and document your conclusion.
Test disposals to approval and proceeds
Obtain appropriate evidence, investigate exceptions and document your conclusion.
Review fully depreciated assets still in use
Obtain appropriate evidence, investigate exceptions and document your conclusion.
Identify idle, damaged or impaired assets
Obtain appropriate evidence, investigate exceptions and document your conclusion.
Things that should make you look deeper
- Transactions or activities outside normal patterns
- Missing or retrospective approvals
- Repeated exceptions without root-cause action
- Manual adjustments with weak supporting evidence
- Key controls dependent on one person
- Management reports that cannot be reconciled to source records
Questions that can open up the process
- What can go wrong in this process?
- Which controls are most important, and who performs them?
- Where does the process depend heavily on manual intervention?
- Which exceptions occur most often, and why?
- What information does management use to know the process is working?
Need a more detailed checklist?
Steal My Checklist contains ready-to-use audit procedures designed to help you structure fieldwork across key business areas.
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