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:
Physical counting and identification of fixed assets
Verification of inventories at various locations
Matching of physical quantities with book records
Assessment of condition and usability of assets
Identification of missing, surplus or obsolete items
Process
A structured methodology is applied:
Planning and scheduling of verification
Preparation of verification sheets and asset lists
On-site inspection and tagging where required
Reconciliation and investigation of differences
Preparation of verification report
Outcomes
The verification report provides a basis for updating asset registers, adjusting books and strengthening asset control procedures.