Fixed asset audit is a systematic examination of an organization’s tangible assets, such as property, plant, equipment, and infrastructure, to verify their existence, condition, and accuracy of records. It ensures proper management, utilization, and safeguarding of fixed assets, as well as compliance with accounting standards and regulatory requirements.

During a fixed asset audit, auditors physically inspect assets, reconcile asset records with physical inventory, and verify ownership and valuation. They also assess the adequacy of internal controls over fixed assets, identify potential risks or deficiencies, and recommend improvements to enhance asset management practices.

Fixed asset audits help organizations optimize asset utilization, prevent loss or theft, and accurately report asset values in financial statements. They also support decision-making related to asset acquisition, disposal, maintenance, and depreciation.