Asset management & maintenance
Fixed asset audit: verifying assets across branches and sites
Plan and run a fixed asset audit: scope, scanning by location, matching to the register, handling missing and unrecorded assets, and approving adjustments.
A fixed asset audit (or physical verification) confirms that assets in the register exist, are where the records say, are in the recorded condition and are still in use. It also finds assets that are in use but missing from the register. For companies with many branches, project sites or plants, regular verification protects the balance sheet and reduces losses.
Why audit fixed assets
- Remove ghost assets (recorded but no longer existing) that inflate the balance sheet and depreciation
- Find unrecorded assets that should be insured, maintained and tracked
- Update locations and custodians after undocumented transfers
- Identify idle and obsolete assets for redeployment or disposal
- Support external audit and insurance renewals
Planning the audit
| Decision | Options |
|---|---|
| Scope | All assets, high-value categories, or a rotating sample of locations |
| Frequency | Annual full verification; quarterly rotating checks for high-risk items |
| Method | Scan tags by location; or confirm with custodians for assigned devices |
| Team | Include people independent of the location's custodians |
| Timing | Avoid peak operating periods; agree cutoff for transfers |
Running the verification
- Generate expected lists per location from the register.
- Scan or check every asset in the location, including those not on the list.
- Record condition (in use, idle, damaged, obsolete) and photos for exceptions.
- Tag untagged assets found during the audit (asset tagging).
- Confirm assigned assets with employees, especially laptops and phones that move (IT asset management).
Reconciling results
| Result | Meaning | Action |
|---|---|---|
| Found as recorded | Location and custodian correct | None |
| Found at a different location | Undocumented transfer | Update record; remind teams of transfer process |
| Not found | Missing, disposed or transferred without records | Investigate; after a set period, propose write-off with approval |
| Found but not in register | Unrecorded addition or expensed item | Add if it meets capitalization or tracking rules |
| Found damaged or idle | Condition change | Repair, redeploy or propose disposal |
Approving adjustments
Write-offs and register changes should be approved by finance and management, with documentation of the investigation. Coordinate accounting entries (derecognition, gain or loss) with your accountant and auditor. See asset registers.
Learning from the audit
Analyze exceptions by location and category. Many missing assets in one branch usually means transfers or check-outs are not being recorded there. Fix the process, not just the register. See asset check-in and check-out.
Fixed asset audit checklist
- Scope, schedule and teams agreed
- Expected asset lists per location prepared
- Every location verified, including storage areas
- Exceptions recorded with photos and explanations
- Missing items investigated before write-off
- Register updated and reconciled to the general ledger
- Audit report with root causes and actions issued
Where Cirquolus fits
Cirquolus Inventory & asset audit supports asset verification and spot audits, bringing discrepancies into a structured review across locations. Asset management keeps fixed asset records, check-in and check-out and valuation. Related: fixed asset depreciation.
Frequently asked questions
What is a fixed asset audit?
A physical verification of assets against the fixed asset register, checking existence, location, condition and completeness.
How often should fixed assets be verified?
At least annually, with more frequent checks for high-value or easily moved items.
What should we do with assets that cannot be found?
Investigate transfers, disposals and custody records first, then propose write-off with approval if they remain missing.
Who should conduct a fixed asset audit?
A team that includes people independent of the location's custodians, often with internal audit or finance involvement.
Bring this workflow to a Cirquolus demo.
Show us your current process, companies and branches. We will map it to the modules you need and propose a realistic rollout.