Stock Audit · Fixed Assets

Fixed Asset Audit & Verification for a register that reflects reality.

Physical verification, tagging, and reconciliation of fixed assets — producing an auditable asset register that reflects what your company actually owns, where it is, and what condition it is in.

Most companies have a fixed asset register that does not accurately reflect their physical asset base. Assets purchased years ago have never been tagged. Assets disposed of, scrapped, or transferred have never been removed from the register. The result is a register that overstates the asset base, understates depreciation in some cases, and cannot withstand serious audit scrutiny.

NDS Advisors provides independent fixed asset audit and physical verification services — physically locating every asset, affixing durable identification tags (barcode or RFID), recording condition and location, and reconciling the physical census against the existing asset register to produce a clean, accurate, auditable fixed asset database.

Fixed asset verification is relevant for companies preparing for statutory audit or due diligence, those undergoing ERP implementation or insurance renewal, and businesses that have not conducted a formal asset verification in recent years. It is also a CARO 2020 requirement — making it essential for companies subject to the Companies Auditor's Report Order.

Our Fixed Asset Audit & Verification Services

Physical Asset Verification

Physical count and verification of all fixed assets across all locations — confirming existence, condition, and location of every item in the asset base.

Barcode & RFID Asset Tagging

Affixing durable barcode or RFID tags to all physical assets — enabling efficient tracking, audit, and lifecycle management going forward.

Asset Register Reconciliation

Reconciliation of physically verified assets against the existing fixed asset register — identifying unrecorded, missing, transferred, and ghost assets.

Ghost Asset Identification & Removal

Identification of assets recorded in the register that cannot be physically located — enabling write-off and correction of inflated book values.

Asset Condition Assessment

Assessment of asset condition — good, fair, poor, or beyond economic use — to support depreciation review, write-off decisions, and insurance renewal.

Depreciation Schedule Review

Review of depreciation rates, useful lives, and methods against Schedule II of the Companies Act, 2013 — identifying under- or over-depreciation.

Asset Codification & Classification

Design and application of a systematic asset numbering and classification system aligned to your industry, ERP, and accounting requirements.

Fixed Asset Register Reconstruction

Reconstruction of the fixed asset register from the ground up using physical verification data — for companies with incomplete or unreliable existing registers.

Our Process

Scope & Planning

Agreement on locations, asset categories, tagging methodology, and reconciliation approach — with a detailed project schedule and field team briefing.

Physical Tagging & Recording

Field team visits each location, physically locates assets, affixes identification tags, photographs each asset, and records condition, location, and serial number.

Data Compilation

All field data compiled into a structured asset database — with asset description, tag number, location, condition, acquisition details, and serial number.

Register Reconciliation

Physical asset database reconciled against the existing fixed asset register — producing a gap analysis of additions, disposals, transfers, and ghost assets.

Report & Verified Register Delivery

Verified fixed asset register delivered with a reconciliation report, ghost asset schedule, depreciation review findings, and maintenance recommendations.

Why It Matters

✓Produces an accurate, auditable fixed asset register

✓Identifies ghost assets inflating balance sheet values

✓Supports statutory audit and CARO 2020 reporting

✓Ensures correct depreciation under Companies Act Schedule II

✓Provides a verified asset base for insurance renewal and valuation

✓Creates clean asset master data for ERP implementation

✓Deters asset misappropriation and theft through visibility

✓Supports due diligence for fundraising, merger, or sale

Frequently Asked Questions

Asset registers drift from physical reality over time — assets are acquired without being recorded, disposed of without being removed, or transferred between locations without update. Independent physical verification corrects this drift, produces a reliable asset register for audit and reporting, and identifies ghost assets that inflate the balance sheet.

A ghost asset is one that appears in the fixed asset register but cannot be physically located. Ghost assets arise from unrecorded disposals, scrapping, theft, or loss. They overstate the asset base, may result in incorrect depreciation charges, distort the balance sheet, and are a specific finding required to be reported under CARO 2020.

For most office and plant assets, barcode tags on durable polyester or metal plates are cost-effective and reliable. RFID tags are recommended for large asset bases, assets that are difficult to access for visual scanning, or environments requiring rapid asset tracking without line-of-sight scanning. We assess your requirements and recommend the appropriate technology at engagement start.

CARO 2020 specifically requires auditors to report whether physical verification of fixed assets has been conducted by management at reasonable intervals, whether discrepancies were noted, and whether they have been dealt with in the books. An independently conducted physical verification provides the strongest audit evidence on this point.

Assets that cannot be physically located are identified as ghost assets and included in a separate schedule in our report. After review and approval by management, these assets should be written off through the profit and loss account. Our report documents the write-off candidates with details sufficient for the accounting entry and audit file.

Yes. We co-ordinate multi-site asset verification engagements across locations nationwide — using trained field teams in each location and a centralised data compilation and quality review process. All sites are verified within an agreed timeframe using consistent methodology and tag numbering to ensure a unified register across locations.

Know exactly what you own, and where it is.

Talk to our team about fixed asset audit and verification — across all your locations, with a clean register delivered at the end.