plant and equipment at the plant is the largest cost component of its assets, in addition, less winding.The account associated with the operating system, taking into account activities such as acquisition, depreciation and disposal of them after the expiration of Use.In order to avoid errors and misstatements audited accounting of fixed assets - checking the relevant information on the OS in the financial documents of the company, the actual situation.
plant and equipment are three main stages: acquisition of fixed assets associated with the formation of their original value, use during the term of which takes depreciation, or, more simply, depreciation and disposals, at which the company sells with outdated operating systems for so-called residual value.It is also possible the movement of fixed assets - this term refers to the movement of the operating system between different departments and areas of production, their transfer from one subject to another internal structure of the company.Since all OS objects are inventory cards and numbers, moving object OS must be properly documented in order then to avoid confusion with his finding.Audit movement of fixed assets, as a rule, included in the audit program and the operating system is an important component of it.Check the correct display of the documentary movement OS will not get lost in the next stages of testing.
audit of fixed assets involves checking the following points:
- correctness of acquisition of the operating system - you must ensure that the initial cost is really written all the costs associated with its acquisition, delivery, installation, assembly, preparation for the launch and operation.
- correctness of depreciation on operating objects - in this case, you must check whether the depreciation method to the one specified in the order on the accounting policy of the enterprise, published every year in the beginning of the year.It is also important to check in time whether the amortization, if not carried out deliberately accelerated depreciation on operating facilities with a view to their subsequent sale at deliberately low prices.
- Audit disposal of fixed assets - the last stage of testing the OS.This test involves identifying irregularities in the write-off of operating facilities and the sale of the residual value.This paragraph is inextricably linked to the first two, because if there was malformed or incorrect initial cost of depreciation is calculated, then, of course, the residual value will be set incorrectly, and the object will be sold for the OS, most likely a lower price that will result in lost benefits to the enterprise.The audit of fixed assets means absolutely necessary analysis of recent transactions for the sale of the operating system and the identification of their legality and compliance with sale prices.
finished checking account OS ends, as usual, standard - drawing up a special letter.The letter describes how the audited accounting of fixed assets, what methods were used to test and what results were achieved.On the basis of this report (conclusion) the company's management can make their future decisions, knowing the real financial picture of the enterprise.The auditor is always fully responsible for the data that he presented in his report, that is, its customers can submit a claim to it with a view to compensate for losses in the event that these losses were triggered by the negligence of the inspection.As a rule, such a case is fatal for a career unlucky auditor.
