Physical verification of assets
Physical verification of assets is a process conducted by external consultants to make sure that the assets of a company actually exist. It is of immense importance for every business entity to carry out this process at the end of every financial year. Our approach to verification is to conduct a line-by-line reconciliation of fixed assets accounting records to assets found during the physical inventory taking process. We have a team of federal tax authority uae associates and supervisors to work on vat tax in UAE. In order to serve in remote locations, we have a special team adjustable to a local location.
The objective of Physical Verification of Assets:
- Statutory Compliance
- Verify the Existence of Assets
- Valuation – Accounting for any discrepancy
- Internal Compliance
- Critical for Continuous Customer Service
This requires an objective assessment of the ledger contents and the business rules (internal controls) that support internal asset management. The process includes:
- Automated Comparison of Asset Tag and Serial Numbers
- Automated and Manual Comparison of Manufacturer Model Numbers
- Comparison of Additional Available Information such as Description, Location, and Department are taken into consideration
- Additional effort is also made to address potential matches by description, manufacturer, model and serial number that may appear elsewhere in each record entry
- Bulk Entries and Grouped Assets are allocated to the Individual Assets (computer equipment, furniture, manufacturing equipment, etc.)
- Follow-up visits with departments are conducted as necessary to verify any residual assets and/or gather additional information
A consistent audit trail is created and used to link the reconciled inventory file with the existing fixed asset accounting records.
At the conclusion of the effort, we provide the audit trail (MS Excel file) and several specific reconciliations reports as defined below:
- Matched assets – items found during the inventory process and traced to the fixed asset accounting records
- Unrecorded additions – items found during the inventory process but not found in the fixed asset accounting records
- Unrecorded retirements – items found in the fixed asset accounting records but not found during the inventory process
We would be delighted to discuss how we can help you in vat calculation in UAE, and your group or company through our experience vat in Dubai. Please get in touch and contact us at firstname.lastname@example.org or alternatively, contact our office directly vat Dubai.