reasonable intervals” for physical verification of assets as per CARO 2016

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Please clarify:
What is the interpretation of "reasonable intervals” for physical verification of assets as per CARO 2016?
Replies (2)
As per the Guidance note given by ICAI regarding CARO 2016

"reasonable intervals” depends on circumstances of each
case. The periodicity of the physical verification of inventories depends upon
the nature of inventories, their location and the feasibility of conducting a
physical verification. The management of a company normally determines the
periodicity of the physical verification of inventories considering these factors.
Normally, wherever practicable, all the items of inventories should be verified
by the management of the company at least once in a year. It may be useful for
the company to determine the frequency of verification by ‘A-B-C’ classification
of inventories, ‘A’ category items being verified more frequently than ‘B’
category and the latter more frequently than ‘C’ category items
Thank you Kishore ji


CCI Pro

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