verification of fixed assets having NIL WDV value
This query is : Resolved
14 December 2009
Dear sirs,
May i request u to pls. give a guideline on what can be the broad audit process on verification of Fixed assets having WDV value as NIL in the Fixed assets Register.
This will be of immense help to me.
Thanx and regrds
S.K.Majumdar
Asst.Manager(Internal Audit)
May i request u to pls. give a guideline on what can be the broad audit process on verification of Fixed assets having WDV value as NIL in the Fixed assets Register.
This will be of immense help to me.
Thanx and regrds
S.K.Majumdar
Asst.Manager(Internal Audit)
15 December 2009
When the co. is following straight line method; then WDV will be NIL after cost is fully consumed by charging depreciation.
It does not mean that physical existence should not be checked.
For example; 10% straight line depreciation is being charged on factory building or furniture; than after ten years; w.d.v. will be NIL but existence of assets is there.
You have to check the physical existence. Regarding valuation; no comment are required to be made.
In your internal audit records; you should have working papers that you have verified these assets.
It does not mean that physical existence should not be checked.
For example; 10% straight line depreciation is being charged on factory building or furniture; than after ten years; w.d.v. will be NIL but existence of assets is there.
You have to check the physical existence. Regarding valuation; no comment are required to be made.
In your internal audit records; you should have working papers that you have verified these assets.
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