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For those in the Consulting business, we hear a lot about Physical Verification of Fixed Asset Management Systems (FAMS). FAMS is a procedure that is conducted by auditors to ensure that the assets of an entity exist in reality. At Cush Consults, our approach to physical verification of fixed assets is to perform a line-by-line reconciliation of the organization's fixed assets accounting records against the assets discovered during the process of physical verification of inventory.

SOP For Physical Verification of Fixed Assets Under Fixed Asset Management
Before you venture out exploring options for physical verification of fixed assets procedure, you need to know about Standard Operating Procedure (SOP) For Fixed Assets Management (FAMS). Read Below.

FAMS Objectives For Physical Verification of Fixed Assets
* Statutory compliance
* Confirms the existence of assets of an entity, as per records
* Realize the condition of these fixed assets
* Valuation and rectification processes for accounting discrepancies
* Managing an entity’s internal compliances
* Verify the location of fixed assets as mentions in the entity’s records
* Essential for uninterrupted customer service
* Control any unauthorized usage and misappropriation of fixed assets

Physical Verification of Fixed Assets Policy Under Fixed Asset Management
1. Tenure
Physical Verification of fixed assets must be conducted at least once in every three years.

2. Team Members
To complete the physical verification of fixed assets, under Fixed Asset Management, you must have the following should be the team members:
* Physical Store’s Staffs and Personnel
* Specialists from the Technical Department
* Units’ Accounts Department Personnel
* User Department Personnel
* Finance Department at Head Office Personnel
* Internal Auditors

3. Physical Verification Taking Sheet
During the physical verification process, a person with the technical know-how of the process should be engaged for the identification of outdated and non-usable inventory, or fixed assets. At the end of the FAMS' physical verification procedure, it is the responsibility of the entity's Finance Personnel to hand-over the signed sheets to the CFO (Chief Financial Officer) at Head Office. All these sheets are further preserved to allow the auditors to verify the final inventory sheet.

4. Reconciliation Statements
The Physical Verification Taking Sheet of an entity should be compared with the FAR as placed under the accounts department's custody. This compares the difference between the two documents to highlight the differences such as shortage or excess, if any, alongside their justifications. Additionally, a Reconciliation Statement must be prepared, which highlights the differences such as shortage or excess, if any, alongside their justifications as found during the Fixed Asset Management reconciliation procedure.

What is the Process of Physical Verification Of Fixed Assets?
The process of Physical Verification of fixed assets could be explained as follows:
a. CFO’s intimation given to the Unit Heads concerning the Physical Verification of fixed assets.
b. The program is to be conducted at least 15 days preceding to the scheduled date, where the date, scheduling, team members, scale and procedure must be clarified.
c. The Unit Head’s pass on instructions forwarded to the various departments such as accounts, stores and other related user departments.
d. In case there is no concern regarding the date of the Physical verification of fixed assets, the procedure should be conducted on the specified date.
e. The team must start the process of filling the Physical Verification Taking Sheet.
f. Any remark from the Technical Expert should be appropriately documented.
g. Reconciling the Land Agreements can be deployed to verify the Land. Likewise, Intangible assets can be verified with the FAR by reconciling related supporting licences and invoices.
h. On completion, the sheet must be signed by all the team members and approved by the Unit Head of the entity’s physical division.
i. After the sheet is finalized, it will get reconciled with the FAR that has been kept in the Accounts Department’s custody.
j. Based on the reconciliation process, a Reconciliation Statement should be prepared, which consists those assets that have not been reconciled with the FAR. Besides, the assets that are marked as outdated or non-usable by the Technical specialists also need to be included in the FAMS reconciliation statement.
k. Reasons regarding shortage or excessive quantities must then be investigated following a consultation with the entity’s Accounts Head, Head of User Department, and Stores Personnel.
l. Later, the statement must be examined and signed by all the Team Members, Head of Departments for accounts to further get authorized by the Unit Head and following its submission to the CFO at Head Office.
m. After consulting the Executive Director of the entity, the CFO may either decide to sanction a write off the Shortage of Assets or document the excess of it.

CUSH’s Practices of Accounting Standards Related to Accounting of Fixed Assets
At Cush Consults, we follow the following Accounting Standards (AS) as per relevancy to the accounting needs of fixed assets, including the physical verification of fixed assets as our FAMS practices.

Our experts utilize the accounting of fixed assets strictly based on these compliance standards:
AS-6: Accounting for Depreciation

AS-10: Accounting for Fixed Assets

AS-11: Accounting of the Effects of Changes in Foreign Exchange Rates

AS-16: Accounting of Borrowing Costs of an Asset

AS-26: Accounting of Intangible Assets

AS-28: Accounting for Impairment of Assets

Our team of FAMS Specialists help you with the following:
- Consolidation of the physical report for all locations and assets or inventories
- Perform reconciliation procedures to match the records of physical count and book count
- Calculate the difference, if any, and identify the justifications
- Management or Executive Summary that will be signed off by the Technical, SCM, Finance, and AJSH
- Deliver Expert Physical Verification Reports

At the closure of the physical verification of fixed assets, we also provide an audit trail formulated on a spreadsheet, alongside several other specific reconciliation reports like as:

* Matched Assets
* Unrecorded Additions
* Unrecorded Retirements

If you have a query about physical verification of fixed assets or need further understanding about our services, contact us!

One of the most important audits for any business to establish is its assets. In any business, its assets are essential as they represent that organization's financial condition and position in the market. The physical assets of any business also act as a plan B in case the company has to or decides to dissolve.
Physical stock verification or stock audit includes counting, calculating and weighing all items in stock.

The Objectives of Physical Verification of Assets:

1. It is legal compliance that organizations need to comply with
2. It ensures the existence of assets of an entity
3. Enables valuation and rectification for any accounting inconsistency
4. To oversee internal compliances of the entity
5. It is essential in order to maintain continuous customer service.

Thus, the physical stock verification process includes:

* Comparing and documenting the asset tags and their serial numbers.
* Manual evaluation of manufacturer model numbers.
* The auditors compare the additional available information such as description, location and department and take them into consideration.
* The process consists of a rigorous attempt to address the potential matches by description, manufacturer, model and serial number that may be documented elsewhere in each record entry.
* Distribution of bulk entries and grouped assets to the individual assets (computer equipment, fixtures, manufacturing equipment, etc.)
* Follow-up visits if required to confirm any residual assets and/or collect additional information.
* Most importantly, the process includes setting up an audit trail for linking the reconciled inventory file with the current fixed asset accounting records.

Benefits of Physical Stock Verification and Reconciliation Services:

1. It provides support to the value of stock shown in the balance sheet through physical verification
2. It verifies the accuracy of stock records
3. Helps in disclosing the possibility of fraudulent activity, theft or loss, or depreciation
4. To identify and address the weakness of the system, if any (i.e., whether the stock is in safe custody).

The physical stock verification process conducts a line-by-line reconciliation of stock assets accounting records to assets found during the physical inventory taking process. All businesses need to carry out the extensive physical verification of stock audit at the end of every financial year, says Cush Consults.

We have a team of skilled consultants and supervisors who work by combining modern techniques and traditional values of physical stock verification to serve you. CUSH Consults offers excellent business advice and solutions for a wide range of clients, from financial institutions to start-ups to multinational companies.

Methods of Stock Verification:
There are three main methods of conducting physical stock verification, and they are as follows:
1. Periodic Verification: Under this method, the whole of the stock or all the assets verification is covered and processed together at the end of a financial year. The reason this is done only in small organizations is that small organizations have fewer assets as compared to large firms. Besides, the periodic verification method is not suitable for big industrial organizations since to complete work for several days is too long.
2. Perpetual Verification: Apart from all the other methods of stock verification, under this method, physical stock verification is stretched throughout the year according to a preset programme. The best part about this verification method is that neither the stores nor the employees have to stop or pause their day-to-functions as a result of the process. This method enables all the verifications to happen on a timely basis.
3. Blind Verification: When the stock verifiers have only given the location but not other details such as the code numbers, description and stock record balances, the basic logic here is that the verifier will not have his opinion about the stock position. This is one of the most popular methods of stock verification since it practically serves no purpose when the entire operation of stores has to be well-planned.

CUSH's Practices of Accounting Standards Related to Verification of Assets
At CUSH Consults, we follow all the Accounting Standards (AS) as per their relevancy to fixed-assets' accounting needs, inclusive of the physical verification of fixed-assets as our FAMS practices.

Along with that, our team of FAMS Specialists can help you with:

* Consolidation of all the physical reports for all locations, assets or inventories
* Implement reconciliation procedures and match the records of physical and book count
* Assess the difference, if any, and identify the justifications
* Deliver Expert Physical Verification Reports

At the closure of the physical verification stock assets, we also provide an audit trail formulated on a spreadsheet, alongside several other specific reconciliation documents such as:

- Matched Assets
- Unrecorded Additions
- Unrecorded Retirements

If you have any more questions about our physical stock verification process or need further understanding about our services, contact us! 08164740256

One of the most important audits for any business to establish is its assets. In any business, its assets are essential as they represent that organization's financial condition and position in the market. The physical assets of any business also act as a plan B in case the company has to or decides to dissolve.
Physical stock verification or stock audit includes counting, calculating and weighing all items in stock.

The Objectives of Physical Verification of Assets:

1. It is legal compliance that organizations need to comply with
2. It ensures the existence of assets of an entity
3. Enables valuation and rectification for any accounting inconsistency
4. To oversee internal compliances of the entity
5. It is essential in order to maintain continuous customer service

Thus, the physical stock verification process includes:

* Comparing and documenting the asset tags and their serial numbers.
* Manual evaluation of manufacturer model numbers.
* The auditors compare the additional available information such as description, location and department and take them into consideration.
* The process consists of a rigorous attempt to address the potential matches by description, manufacturer, model and serial number that may be documented elsewhere in each record entry.
* Distribution of bulk entries and grouped assets to the individual assets (computer equipment, fixtures, manufacturing equipment, etc.)
* Follow-up visits if required to confirm any residual assets and/or collect additional information.
* Most importantly, the process includes setting up an audit trail for linking the reconciled inventory file with the current fixed asset accounting records.

Benefits of Physical Stock Verification and Reconciliation Services:

1. It provides support to the value of stock shown in the balance sheet through physical verification
2. It verifies the accuracy of stock records
3. Helps in disclosing the possibility of fraudulent activity, theft or loss, or depreciation
4. To identify and address the weakness of the system, if any (i.e., whether the stock is in safe custody).

The physical stock verification process conducts a line-by-line reconciliation of stock assets accounting records to assets found during the physical inventory taking process. All businesses need to carry out the extensive physical verification of stock audit at the end of every financial year, says Cush Consults.

We have a team of skilled consultants and supervisors who work by combining modern techniques and traditional values of physical stock verification to serve you. CUSH Consults offers excellent business advice and solutions for a wide range of clients, from financial institutions to start-ups to multinational companies.

Methods of Stock Verification:
There are three main methods of conducting physical stock verification, and they are as follows:
1. Periodic Verification: Under this method, the whole of the stock or all the assets verification is covered and processed together at the end of a financial year. The reason this is done only in small organizations is that small organizations have fewer assets as compared to large firms. Besides, the periodic verification method is not suitable for big industrial organizations since to complete work for several days is too long.
2. Perpetual Verification: Apart from all the other methods of stock verification, under this method, physical stock verification is stretched throughout the year according to a preset programme. The best part about this verification method is that neither the stores nor the employees have to stop or pause their day-to-functions as a result of the process. This method enables all the verifications to happen on a timely basis.
3. Blind Verification: When the stock verifiers have only given the location but not other details such as the code numbers, description and stock record balances, the basic logic here is that the verifier will not have his opinion about the stock position. This is one of the most popular methods of stock verification since it practically serves no purpose when the entire operation of stores has to be well-planned.

CUSH's Practices of Accounting Standards Related to Verification of Assets
At CUSH Consults, we follow all the Accounting Standards (AS) as per their relevancy to fixed-assets' accounting needs, inclusive of the physical verification of fixed-assets as our FAMS practices.

Along with that, our team of FAMS Specialists can help you with:

* Consolidation of all the physical reports for all locations, assets or inventories
* Implement reconciliation procedures and match the records of physical and book count
* Assess the difference, if any, and identify the justifications
* Deliver Expert Physical Verification Reports

At the closure of the physical verification stock assets, we also provide an audit trail formulated on a spreadsheet, alongside several other specific reconciliation documents such as:

- Matched Assets
- Unrecorded Additions
- Unrecorded Retirements

If you have any more questions about our physical stock verification process or need further understanding about our services, contact us!

One of the most important audits for any business to establish is its assets. In any business, its assets are essential as they represent that organization's financial condition and position in the market. The physical assets of any business also act as a plan B in case the company has to or decides to dissolve.

Physical stock verification or stock audit includes counting, calculating and weighing all items in stock.

The Objectives of Physical Verification of Assets:
* It is legal compliance that organizations need to comply with
* It ensures the existence of assets of an entity
* Enables valuation and rectification for any accounting inconsistency
* To oversee internal compliances of the entity
* It is essential in order to maintain continuous customer service

Thus, the physical stock verification process includes:

- Comparing and documenting the asset tags and their serial numbers.
-Manual evaluation of manufacturer model numbers.
- The auditors compare the additional available information such as description, location and department and take them into consideration.
- The process consists of a rigorous attempt to address the potential matches by description, manufacturer, model and serial number that may be documented elsewhere in each record entry.
- Distribution of bulk entries and grouped assets to the individual assets (computer equipment, fixtures, manufacturing equipment, etc.)
- Follow-up visits if required to confirm any residual assets and/or collect additional information.

Most importantly, the process includes setting up an audit trail for linking the reconciled inventory file with the current fixed asset accounting records.

Benefits of Physical Stock Verification and Reconciliation Services:
* It provides support to the value of stock shown in the balance sheet through physical verification
* It verifies the accuracy of stock records
* Helps in disclosing the possibility of fraudulent activity, theft or loss, or depreciation
* To identify and address the weakness of the system, if any (i.e., whether the stock is in safe custody).

The physical stock verification process conducts a line-by-line reconciliation of stock assets accounting records to assets found during the physical inventory taking process. All businesses need to carry out the extensive physical verification of stock audit at the end of every financial year, says Cush Consults.

We have a team of skilled consultants and supervisors who work by combining modern techniques and traditional values of physical stock verification to serve you. CUSH Consults offers excellent business advice and solutions for a wide range of clients, from financial institutions to start-ups to multinational companies.

Methods of Stock Verification:
There are three main methods of conducting physical stock verification, and they are as follows:

1. Periodic Verification: Under this method, the whole of the stock or all the assets verification is covered and processed together at the end of a financial year. The reason this is done only in small organizations is that small organizations have fewer assets as compared to large firms. Besides, the periodic verification method is not suitable for big industrial organizations since to complete work for several days is too long.

2. Perpetual Verification: Apart from all the other methods of stock verification, under this method, physical stock verification is stretched throughout the year according to a preset programme. The best part about this verification method is that neither the stores nor the employees have to stop or pause their day-to-functions as a result of the process. This method enables all the verifications to happen on a timely basis.

3. Blind Verification: When the stock verifiers have only given the location but not other details such as the code numbers, description and stock record balances, the basic logic here is that the verifier will not have his opinion about the stock position. This is one of the most popular methods of stock verification since it practically serves no purpose when the entire operation of stores has to be well-planned.

CUSH's Practices of Accounting Standards Related to Verification of Assets
At CUSH Consults, we follow all the Accounting Standards (AS) as per their relevancy to fixed-assets' accounting needs, inclusive of the physical verification of fixed-assets as our FAMS practices.

Along with that, our team of FAMS Specialists can help you with:
* Consolidation of all the physical reports for all locations, assets or inventories
* Implement reconciliation procedures and match the records of physical and book count
* Assess the difference, if any, and identify the justifications
* Deliver Expert Physical Verification Reports

At the closure of the physical verification stock assets, we also provide an audit trail formulated on a spreadsheet, alongside several other specific reconciliation documents such as:

* Matched Assets
* Unrecorded Additions
* Unrecorded Retirements

If you have any more questions about our physical stock verification process or need further understanding about our services, contact us!
08164740256

Titus 3:9-
But avoid foolish questions, and genealogies, and contentions, and strivings about the law; for they are unprofitable and vain.

To fellow Chritstians in the House. #shutyourmouth what anyone who doesn't believe is Prayers. There's nothing you as a person can do or say to change or transform a soul. Is it not Jehovah, Yahweh, with him all things are possible.Titus 3:9-
But avoid foolish questions, and genealogies, and contentions, and strivings about the law; for they are unprofitable and vain.

To fellow Chritstians in the House. #shutyourmouth what anyone who doesn't believe is Prayers. There's nothing you as a person can do or say to change or transform a soul. Is it not Jehovah, Yahweh, with him all things are possible.Titus 3:9-
But avoid foolish questions, and genealogies, and contentions, and strivings about the law; for they are unprofitable and vain.

To fellow Chritstians in the House. #shutyourmouth what anyone who doesn't believe is Prayers. There's nothing you as a person can do or say to change or transform a soul. Is it not Jehovah, Yahweh, with him all things are possible.

Titus 3:9-
But avoid foolish questions, and genealogies, and contentions, and strivings about the law; for they are unprofitable and vain.

To fellow Chritstians in the House. #shutyourmouth what anyone who doesn't believe is Prayers. There's nothing you as a person can do or say to change or transform a soul. Is it not Jehovah, Yahweh, with him all things are possible.

Pls Bro,
I'll like a copy of the very recent format too 3adonis@gmail.com.
Thanks a lot!

Pls Bro,
I'll like a copy of the very recent format too 3adonis@gmail.com.
Thanks a lot!