How do you audit a fixed asset?

Audit of fixed assets Step 1: understand the client procedure of Fixed Assets acquisition and disposal. Step 2: Obtain Fixed Assets Register as maintained by the Client. Step 3: Vouching of Additions to Fixed Assets. Step 4: Vouching of Deletion from Fixed Assets. Step 5: Depreciation and Amortization. Step 6: Revaluation. Step 7: Other. Click to see full answer. Simply so, how do you verify fixed assets?Verification of fixed assets consists of examination of related records and physical verification. The auditor should normally verify the records with reference to the documentary evidence and by evaluation of internal controls. Physical verification of fixed assets is primarily the responsibility of the management.One may also ask, how do you audit depreciation expense? Audit Procedure: Review Depreciation Rate: Auditors should assess the reasonableness of depreciation that entity provided to the group or class of assets. Recalculate the depreciation expenses: This is normally done by auditors to recalculate the depreciation expenses prepared by accountants in their depreciation schedule. Beside above, what documents would you vouch for sale of fixed assets? Vouching Sale of Fixed Assets Fixed asset register. Sale Agreement. Statement of accounts from Auctioneers. Brokers’ sold note. Correspondence (if any) Directors’ minutes book in the case of a company. What are the proper audit procedures to ensure existence of assets in the financial statements?The most accurate procedure to ensure the existence of assets is physical inspection and inventory. It is also desirable to also inspect related documentation such as deeds, leases, invoices etc. – companies have been known to “stage” locations in order to pass auditor inspections.