Internal Audit - Fixed Assets Audit Program

Internal Audit Financial Controls Programme 6. Fixed Assets Purchases 6.1 6.1 New New capi capita tall asse assets ts are are prop proper erly ly auth author oris ised ed and and subj subjec ectt to ten tenderi dering ng proc proces ess s in accordance with the Capital Expenditure policy and procedures and also Approval Limits. Testing Review the capital assets purchasing purchasing policy for compliance compliance with policy. Sample three capital assets acquired in the previous 12 months to ensure that the policy has been applied and the purchases have been appropriately authorised. Results

Recording 6.2 Expend Expenditu iture re is only only capita capitalis lised ed if in accord accordan ance ce with with the polic policy, y, otherw otherwise ise it is expensed. 6.3

A fixed asset register is maintained in which all capital purchases and disposals are recorded.

6.4

Updates to the fixed asset register are authorised and checked.

6.5

Fixed asset registers are regularly reconciled to the Accounting records, including the General Ledger. Testing 1. Obtai Obtain n a copy copy of the the Fixed Fixed Asset Asset Regi Registe ster. r. 2. Review this to ensure capitalised items are in line with policy. 3. Find out out who can can make amend amendmen ments ts to the Fixed Fixed Asset Asset Register Register and and whether  whether  amendments are checked and authorised. 4. Verify Verify whether whether the Fixed Fixed Asset Register Register is reconci reconciled led again against st the the GL. GL. Check Check the balances of both and obtain explanations for any difference. Results

Existence 6.6 Fixed Fixed asse assets ts are are physic physicall ally y verifi verified ed on on a regula regularr basis basis and and agree agreed d to the the fixed fixed asse assett register. The results results are documented. documented. Testing Enquire when the fixed assets were last physically verified and reconciled to the Fixed Asset Register. Review the documentation documentation for this. Results

Valuation 6.7 Revisions Revisions to valuatio valuations ns (eg due to obsolesce obsolescence, nce, revaluation revaluations s and write-offs write-offs)) are properly authorised. 6.8

Depreciation is calculated calculated in accordance with Group Group policy and rates. Depreciation is recorded at individual asset level. Testing 1. Enquire Enquire whethe whetherr any revaluatio revaluations ns have have been been made made.. If yes verify how these these have been authorised. 2. Obtain the local local depreciation depreciation policies. Review these for for compliance with with the policy. 3. Revi Review ew the the Fixe Fixed d Asse Assett Regi Regist ster er to ensu ensure re that that depr deprec ecia iati tion on has has been been

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Internal Audit Financial Controls Programme correctly applied. Results

Security 6.9 Fixed assets are safeguarded from waste, fraud, loss, unauthorised use and misappropriation by human action or natural occurrences (eg weather and natural disasters). Testing Enquire how fixed assets are protected from the above risks. Results

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