Inspection of Fixed Assets

Inspection of Fixed Assets

Audit of Fixed Asset

Value Measurement after Recognition of Initial Value
The business shall declare as property, plant and equipment by cost
price – accumulated depreciation – asset impairment allowance,
after business has initially already recognized such transaction as asset.

Asset Revaluation

Net Value (new) = Fair Value – Accumulated Depreciation – Allowance for Asset Impairment
After the first recognition of transaction as asset, the business should constantly declare PPE with the price in revalued amount.
The variance is recorded as surplus of asset revaluation (declared in part of Shareholders’ Equity).

Asset Impairment

It emphasizes on the asset management ability of the executive for full use of asset.
Value Expected to be Refunded < Book Value = Recognition on Loss from Asset Impairment

General Audit

To summarize and declare the change in asset and accumulated depreciation from beginning period to ending period;
To audit sum สินทรัพย์ถาวรใน G/L = F/A register
To verify asset depreciation estimation policy whether it has still been adhered as last year.
To audit the title of fixed asset (F/A) (see document of titleand obligation).
To audit asset that is obsolete for use (read minutes of meeting, inquire the officer and audit usage).
To audit income from letting F/A.
To audit contingent liability from purchase of F/A.
To audit F/A revaluation.
To audit leasehold asset.
To audit the appropriateness of Insurance Coverage.
To audit loan contract for realization on taking Fixed-Asset for security.

Audit Method

  • 1. Audit on asset purchase by checking evidence to support purchase and approval whereas actual existence of asset, valuation and right and actual incurred obligation are realized
  • 2. Audit on asset sale by reading minutes of meeting, checking receiptevidence and approval for actual accuracy
  • 3. Audit onthe entity of F/A by count, visit at factory, site and branch of the business for completeness and actual existence of asset
  • 4. Audit on work in construction
  • 5. Verification on repair expense
  • 6. Audit on depreciation calculation and asset impairment
  • 7. Evaluation of Property, Plant and Equipment


Audit on Intangible Asset
Intangible Assets include:
- Goodwill
- Copyright
- Patents
- Trademarks
- Franchises
- Leasehold
- Corporate Organization Cost
- Deferred Charges

Audit Aspect
To realize on acquisition of asset, amortization and estimation of useful life.