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ASSET INVENTORY AUDITS
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When you consider a company’s internal controls, audits of fixed assets are perhaps the most routinely avoided. Audits of fixed assets are both infrequent and cumbersome. The quality of the underlying data is often out of date and, for audit purposes, difficult to use. As a result, the fieldwork becomes tedious and the reconciliation process inaccurate. Often the results are viewed with suspicion. Not a pretty picture.
The process of auditing a company’s fixed assets can, however, be easily improved. Actions taken by the accounting department and the auditor can dramatically change how audits of fixed assets are conducted and greatly reduce the tedium associated with them. The following will explore the present state of audits of fixed assets, as well as what changes can be made to improve the process.