Physical Verification of Stock & Fixed Assests

Cutoff analysis :

• Observe the physical inventory count.
• Reconcile the inventory count to the general ledger
• Test high-value items.
• Test error-prone items
• Test inventory in transit
• Test item costs.
• Review freight costs.

Fixed assets Verification :

• Recognize the accounts in which fixed assets are typically recorded.
• Note the changes in a fixed asset audit, based on the types of assets being audited.
• Cite the situations in which inherent risk is more likely to be high.
• Describe the fixed asset roll forward report.
• Recognize the ways to detect assets that were dispositioned but not recorded.
• Note the circumstances that can trigger a possible asset impairment.