Physical Verification of Assets involves the inspection of fixed assets and inventories to confirm their existence, location, condition and identification against the records maintained in the books of account. Discrepancies are identified and reported for corrective action.
Scope of Verification
The exercise covers:
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Physical counting and identification of fixed assets
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Verification of inventories at various locations
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Matching of physical quantities with book records
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Assessment of condition and usability of assets
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Identification of missing, surplus or obsolete items
Process
A structured methodology is applied:
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Planning and scheduling of verification
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Preparation of verification sheets and asset lists
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On-site inspection and tagging where required
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Reconciliation and investigation of differences
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Preparation of verification report
Outcomes
The verification report provides a basis for updating asset registers, adjusting books and strengthening asset control procedures.