Performing Audit Tests of Balances (In-Person and Remotely)—Part 6, Auditing Fixed Assets

CPE Credit: 2 hours

For most small to medium-sized entities, internal controls over fixed assets will usually be few in number. On the other hand, limiting the authority for making purchases and disposals of fixed assets to the owner, manager, president, chief financial officer or other individuals charged with governance can create entity-level (key) controls that reduce the risk of material misstatement. Without such controls, the assessed level of risk of material misstatement will ordinarily be high.

Topics Covered

• Accounting standards that affect auditing procedures for fixed assets and related accounts
• Designing cost-efficient auditing procedures to verify applicable financial statement assertions

Learning Objectives:

• Understand the basic procedures for auditing fixed assets
• Understand the affects of accounting standards on fixed assets auditing procedures
• Understand the relationship of risk and fixed assets auditing procedures
• Learn ways to audit fixed assets more efficiently
• Design and prepare the most efficient documentation of fixed assets auditing procedures