plant and equipment are the most important part of the assets of any company.It is with the use of fixed assets linked to the primary production activities of any company, because the operating system is a database of the production process.In order to avoid any distortion in the accounting OS audited operations with fixed assets.
What includes this type of audit?Audit of operations with fixed assets includes verification of all documents that are purchased now are in use, which is accrued depreciation, and sold after the end of life cost, referred to as a residual.
To conduct an audit of operations with fixed assets, check the following criteria:
1. The existence of objects operating system, which is checked - for that you need to take stock of the objects operating systems that are subject to verification.In fact, the inventory represents the personal presence of the auditor of the OS objects displayed in documents.If any OS objects do not exist or they are not in the same condition in which are described, the auditor should make a note in the working papers and present them in custody.
2. The right of ownership of the operating system that are in the enterprise - at this stage the auditor should determine whether the operating system objects are owned by the firm, and whether it has the right of disposal.This usually happens due to the verification of payment for purchased items OS, so after checking the OS is often necessary to carry out an audit of operations with cash.
3. Evaluation.To check the operating system is complete and the results showed a complete picture of the enterprise, it is necessary to find out whether all of the objects evaluated operating system.In addition to assessing the primary value of your fixed assets and determine their liquidation value, which is the selling price of objects operating system after use, to this point applies to depreciation, or, as it is called, amortization, which is a regular contributions to a special reserve created forIn order to be able to subsequently acquire new OS instead has spent his own.
As the cost of the OS, as a rule, is the largest part of the assets of the enterprise, which means that it is through the OS formed the bulk of the firm's assets, and hence its value.The cost of the company is reflected in its stock price.That is why it should be understood that the inconsistencies found in the operating system may entail a need to conduct an audit of operations with securities
In general, check the status of operations with the OS is an important moment in the life of any company, as it enables management to imagine a complete picture of what is happeningOS.Audit of operations with fixed assets is one of the most important tools for maintaining a stable financial condition of the company, because it does not give her a chance to be trapped due to incorrect evaluation and depreciation on operating system.This check is not performed as often as other types of audit.But in order to maintain the state of the company at an optimum, it is recommended to audit operations with fixed assets not less than once every three years.
We hope that reading this article will help young accountants and auditors to deal with such a complex issue as checking the status of the operation is running in the enterprise, and corporate executives to convince of the need for regular review of this kind.
