Stock Audit Services · Fixed Assets

Fixed Asset Audit & Verification.

Physical verification of all fixed assets against the fixed asset register — confirming existence, location, condition, and asset tagging for plant, machinery, vehicles, equipment, and other capital assets.

Fixed assets are the backbone of a manufacturing or capital-intensive business — and often its largest class of assets. Yet they are also among the most under-audited. Over time, assets that have been sold, scrapped, or transferred continue to appear on the fixed asset register, ghost assets inflate the asset base, depreciation is computed on non-existent items, and capitalised expenditure is misclassified. These are not minor errors: they affect reported profits, insurance valuations, and — critically — the security available to lenders.

A fixed asset audit addresses all of these risks. Our teams physically verify every asset on the register — confirming it exists, is at the location recorded, is in the condition described, and is correctly tagged with a unique asset identification number. Assets not found in the physical verification are traced — retired, transferred, or reported as missing. Assets found but not on the register are identified for capitalisation.

At Beyonte Compliances, we conduct fixed asset audits across all categories of capital assets — plant and machinery, furniture and fixtures, vehicles, computers and IT equipment, office equipment, and land and buildings — with sector-specific expertise in manufacturing, hospitality, healthcare, and infrastructure.

What Our Fixed Asset Audit Covers

Physical Verification

On-site verification of every asset on the fixed asset register — confirming existence, physical location, and condition against the register description and last audit data.

Asset Tagging & Identification

Assignment or verification of unique asset identification numbers — using barcode labels, QR codes, or engraved tags — creating a tamper-evident link between the physical asset and the register.

Ghost Asset Identification

Identification of assets that appear on the register but cannot be located physically — including assets that have been scrapped, sold, or transferred without being removed from the register.

Unrecorded Asset Discovery

Identification of assets physically present at the location but not recorded in the fixed asset register — requiring capitalisation and inclusion in the depreciation schedule.

Condition Assessment

Recording the physical condition of each asset — good, fair, or poor — and flagging assets that are idle, damaged, or approaching the end of their useful life for management attention.

Depreciation Verification

Verification that depreciation has been computed correctly — using the method and rates prescribed by the Companies Act (Schedule II) or Income Tax Act (Appendix I) — and that fully depreciated assets still in use are identified.

Fixed Asset Register Reconciliation

Reconciliation of the verified asset list with the fixed asset register and the figures in the financial statements — identifying all differences and their accounting treatment.

Bank Security Verification

Where assets are pledged as security for term loans or working capital, verification that the pledged assets exist, are in usable condition, and match the descriptions in the charge documents.

Our Process

Register & Schedule Review

Review of the existing fixed asset register, depreciation schedule, additions and disposals during the year, and prior audit report — to focus verification on high-risk or high-value categories.

Location Mapping

Identifying all locations where assets are held — plant, office, warehouse, field — and planning the verification sequence to cover all locations efficiently.

Physical Verification & Tagging

On-site verification of each asset — recording the asset tag, serial number, make, model, condition, and location — and assigning new tags where missing or damaged.

Reconciliation & Exception Analysis

Reconciling the physically verified list with the register — categorising exceptions as ghost assets, unrecorded assets, location discrepancies, or condition issues requiring write-off.

Report & Updated Register

Delivering the fixed asset audit report with a reconciled, updated asset register — ready for use by management, auditors, insurers, and lenders.

Why It Matters

✓Eliminates ghost assets that inflate depreciation and insurance premiums

✓Discovers unrecorded assets that should be capitalised

✓Provides an accurate register for insurance valuation purposes

✓Verifies bank security exists and is in usable condition

✓Confirms depreciation is computed on existing, correctly classified assets

✓Asset tagging creates a traceable link between physical assets and records

✓Identifies idle or damaged assets for write-off or disposal decisions

✓Delivers an updated, verified register ready for the statutory auditor

Frequently Asked Questions

For most businesses, a full fixed asset verification every two to three years is adequate — with annual spot-checks on high-value or high-risk categories. Bank-mandated fixed asset audits may be required annually. Businesses with high asset turnover — plant additions, disposals, relocations — benefit from annual verification.

A ghost asset is an asset that appears on the fixed asset register but no longer exists — because it has been scrapped, sold, stolen, or destroyed without being removed from the register. Ghost assets inflate the asset base, cause over-depreciation, and result in unnecessary insurance premiums. A physical verification identifies and eliminates them.

Yes. Where assets are not already tagged, or where existing tags are damaged or missing, we can affix barcode or QR code labels to each asset as part of the verification process — creating a permanent, scannable link between the physical asset and the fixed asset register entry.

Yes. We co-ordinate multi-location fixed asset verifications across plants, offices, warehouses, and field locations — deploying trained teams simultaneously where required — and deliver a single consolidated report covering all locations.

Know exactly what assets you own — and where they are.

Talk to our team about a fixed asset audit that gives you a verified, tagged, and reconciled asset register.