Physical asset audit checklist

Audit details

1. Prepare

• Scope agreed (sites, locations, categories) and communicated to custodians and department heads
• Cut-off date and time set; baseline register exported as at the cut-off
• Asset movements frozen during the count, or every movement logged with time and destination
• Accuracy target and variance thresholds agreed with finance
• Counters briefed on the method, variance types and how to handle untagged items
• Scanners or phones charged and tested; spare labels and pens packed
• Location list, floor plans and counting route prepared; each location assigned to a counter
• Access arranged for locked rooms, stores and off-site locations

2. Count

• Work each location systematically (e.g. clockwise from the door) and mark it complete
• Scan or verify every tagged asset; check the description matches the item
• Record condition (new / good / fair / poor / scrap) and photograph damaged items
• Check serial numbers on high-value and portable items
• Record assets found in the wrong location as misplaced — don’t move them during the count
• Tag and record any untagged or unregistered asset found
• Note assets that are checked out or away for repair, with evidence
• Counter signs each completed location sheet

3. Reconcile

• Count compared with the baseline register for every location in scope
• Variances classified: found, missing, misplaced, unregistered, duplicate
• Missing items re-searched (second count) and checked against check-out and repair records
• Moves confirmed with custodians and the register updated
• Unregistered items investigated (purchase records, transfers) and registered or excluded
• Confirmed losses documented and proposed for write-off

4. Report & sign off

• Variance report issued to finance and asset owners
• Write-offs approved in line with the delegation of authority
• Register updated and new baseline exported
• Lessons learned recorded; next audit scheduled