GlossaryInventory & Audits

What is an asset audit?

Also known as: fixed asset audit, asset verification audit, physical asset audit, equipment audit.

Definition

An asset audit verifies that assets in the register physically exist, are where records say, and are correctly recorded — then resolves the differences.

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An asset audit tests the register against reality. Auditors physically locate assets, confirm they exist and are in the recorded location, check their details and condition, and look for assets that are present but unrecorded. The output is a list of differences — and a set of corrections, write-offs and process fixes. Internal teams run asset audits to keep control; external auditors test samples of fixed assets as part of the financial statement audit.

What an asset audit checks

AssertionQuestionHow it is tested
ExistenceDoes each recorded asset really exist?Trace from register to floor: find and scan it
CompletenessIs everything we own in the register?Trace from floor to register: record untagged or unknown items
AccuracyAre location, custodian, description and status right?Compare what you see with the record
ConditionIs it still in use and serviceable?Note damage, obsolescence, idle assets
ValuationIs the value on the books reasonable?Review cost, depreciation, impairment indicators (finance)

Testing in both directions matters. Register-to-floor finds missing and ghost assets; floor-to-register finds unregistered assets.

Types of asset audit

  • Full audit — every asset in scope, usually annually.
  • [Cycle count](/glossary/cycle-count) — a rotating subset on a schedule.
  • Spot check — a small random sample to test the register's reliability.
  • Targeted audit — a department, a high-risk category, or after an incident or move.

Step by step

  1. Define scope, cut-off and who signs off.
  2. Clean the register: remove known disposals, merge duplicates.
  3. Assign auditors to areas and give them the expected list (or let the app hold it).
  4. Count and scan by location; capture untagged items with photos and notes.
  5. Reconcile to produce found / missing / unregistered and wrong-location lists.
  6. Investigate: check custody, check-outs, repairs and movement history for missing items.
  7. Approve adjustments — location fixes, new registrations, write-offs — with evidence.
  8. Report results and the root causes, and schedule the next audit.
Measuring audit accuracy
Expected in scope: 800 assets. Found: 776. Missing: 24. Unregistered: 11. Wrong location: 40.
Existence rate = 776 ÷ 800 = 97.0%.
Location accuracy of found assets = (776 − 40) ÷ 776 = 94.8%.
After investigation, 18 of the 24 missing are located → final existence = 794 ÷ 800 = 99.25%.

Common audit findings and their causes

  • Missing assets — disposals never recorded, informal loans, theft, assets in unscoped areas.
  • Wrong locations — moves not recorded because updating the register is a chore.
  • Unregistered assets — purchases on cards or expense claims bypassing the registration step.
  • Duplicate records — the same asset registered twice by different teams.

How Asetavo runs asset audits

Asetavo audits are scoped by location, floor or category and assigned to auditors. Counts come from phone scans (QR, barcode, NFC) or, on Business, bulk UHF RFID reads, and build in real time. The variance report shows found, missing and unregistered assets item by item; you resolve discrepancies into the register and every change is recorded in the tamper-evident history. Recurring audits keep the register honest between year-ends.

FAQ

Common questions about asset audit

It depends on the number of assets, how they are tagged and how spread out they are. Bulk RFID reads and a clean register shorten it the most; untagged assets slow it down the most.
From definition to done

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