Physical Verification of Fixed Assets
Physical Verification of Fixed Assets Introduction Fixed assets such as land, buildings, plant and machinery, furniture, vehicles, and equipment represent a substantial investment for an organization. Ensuring their existence, proper use, and accurate recording is critical for financial integrity. Physical verification of fixed assets is a key internal control and audit process that supports reliable financial reporting, statutory compliance, and effective asset management. Meaning of Physical Verification Physical verification of fixed assets refers to the systematic process of physically inspecting assets and reconciling them with the fixed asset register . It confirms that assets recorded in the books actually exist, are owned by the entity, are in usable condition, and are employed for business purposes. Objectives of Physical Verification The primary objectives are to: Verify the existence and ownership of fixed assets Ensure accuracy and completeness of asset recor...