Why Conduct a Physical Audit?
There’s no room for error when you need a precise picture of your company’s physical assets. Knowing exactly what assets you currently have, where these assets are located and how these assets are changing over time, allows a company to keep track of details of each fixed asset, ensuring control and preventing misappropriation of assets. Thus we start to conduct physical audit before anything else
Long gone are the days when asset audit was based on sampling methods. Impax carries out an automated fixed assets audit of the existing assets using portable scanners installed with the latest audit software. The objective of the audit is to verify that assets physically exist. However our services go beyond this by offering the following benefits:
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- Essential clean-up of variances between what is being financially accounted for in the asset register and what is actually present. On average, 15% of the total assets register are discovered as “ghost” assets after physical audits.
- Keeping track of correct value of assets, which allows for computation of depreciation and taxes for reporting purposes while ensuring compliance with corporate and government policies.
- An updated fixed assets register will help maintain accurate insurance premiums to avoid unnecessary extra payments for premiums.
- The time taken in carrying out an audit service is significantly reduced by as much as 80%. This encourages more regular physical audits which results in a more accurate Fixed Assets register.
- Mistakes caused by human error in data capture are significantly reduced resulting in a more accurate fixed assets register.
- Putting in place best practice fixed assets management process, structures and policies.