Assets not captured in fixed asset register

Nayana Ravindranath (Student) (26 Points)

01 March 2013  

Dear all,

Please help me to give a proper recommendation to the following issue.

During the Annual Maintenance Contract charges (AMC) review, Internal Audit (IA) observed AMC is being paid to few assets which were not in the asset register of the company. Further, it was noted that these assets are in the organization but these were not captured in the asset register during the purchase year, 2005 onwards- identify with the help of Invoice from the Vendor for the aseet with the same serial number. Cost of the asset was Rs. 3.4 Lakhs. In case the asset were captured,WDV of these asset should be Zero or close to Zero.

Now the Management is not able to corelate these assets with any assets with its serial number, amount etc.

Please forward your views to provide a proper recommandation to the Management.

Thanks & Regards

Nayana Ravidranath