FIXED ASSETS PROCESS CONTROLS

# Business Point of Focus/ Control Objective Does this Describe specific Controls Test Procedures Controls Describe the basis for Deficiencies Noted Type of Management
Activity control activities, programs or properly operating effectiveness Deficiency Action Plan to
exist? controls in place that designed? effectively? conclusion (including (Efficiency, Address
satisfy the objective evidence of operation) Fin. Deficiencies
Reporting,
Compliance)

1 Recorded fixed asset acquisitions

represent fixed assets acquired by
the organization.
Acquiring Fixed Assets

2 Prior to the acquisition of any fixed

asset, a capital authorization is
obtained.
3 Fixed asset acquisitions are
accurately recorded in the
appropriate period.
4 All fixed asset acquisitions are
recorded.

5 Capital expenditure overruns are

anticipated and properly approved.

6 Depreciation charges are valid.

7 Depreciation charges are accurately

calculated and recorded.
Depreciating Fixed Assets

8 All depreciation charges are recorded

in the appropriate period.
9 Recorded fixed asset disposals
represent actual disposals.
10 All fixed asset disposals are
recorded.
11 Fixed asset disposals (and related
gain/loss) are accurately calculated
and recorded.

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# Depreciating Fixed Assets
Business Point of Focus/ Control Objective Does this Describe specific Controls Test Procedures Controls Describe the basis for Deficiencies Noted Type of Management
Activity control activities, programs or properly operating effectiveness Deficiency Action Plan to
exist? controls in place that designed? effectively? conclusion (including (Efficiency, Address
satisfy the objective evidence of operation) Fin. Deficiencies
Reporting,
Compliance)

12 Fixed asset disposals (and related

gain/loss) are recorded in the
appropriate period.
13 Records of fixed asset maintenance
activity are accurately maintained.

14 Fixed assets are adequately

safeguarded.
Managing Fixed Assets

15 Fixed asset maintenance records are

updated timely.
16 The Fixed asset register is reconciled
to the General Ledger on a regular
basis.
17 Management performs regular
reviews for impairment of fixed
assets.
18 A physical inventory of fixed assets is
taken periodically and reconciled to
the fixed asset register and general
ledger.
19 Only valid changes are made to the
Asset Register and/or

fixed asset register and/or master

Maintaining Fixed

file.
Master File

20 All valid changes to the fixed asset

register and/or master file are input
and processed accurately.
21 Changes to the fixed asset register
and/or master file are processed in a
timely manner.

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