1 compare net book value of fixed assets in far to

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1) Compare net book value of fixed assets in FAR to that of the Financial system.
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2. Purchasing And Maintaining PPE Budget Control Objective Test Of Control 5) Proper authorization for purchases. Determine if the asset purchase requisition was properly approved Determine if the purchase requisition was approved in a timely basis per policy Was the budget reviewed for compliance? Do requisitions for assets indicate whether the item is an addition, replacement or improvement? Who makes the above determination? Are assets recorded in the fixed assets register as such (i.e. Addition, replacement, improvement) 6) Limit the number of employees authorized to approve capital asset purchases 1) Check how many employees are authorized to approve capital asset purchases. 2) The number should be limited to as few as practicably possible to reduce the opportunities to make unauthorized purchases.
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7) Maintenance of the capital assets budget 1) Inquire whether the capital budgets are compared to actual expenditures on a monthly basis and significant differences analyzed. 2) Because most capital expenditure is anticipated in advance, comparing budget to actual amounts can help detect misuse of funds. 8.) Segregation of duties. 1) Determine whether the purchasing function is performed independently of the receiving and recording of acquisition functions. 2) Document the division of duties.
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3. Receiving 9) Efcient receiving of assets Check that the delivery note properly date stamped upon receipt. Check for evidence that the asset was physically inspected and compared to the delivery note. Was the delivery note forwarded to the accounts department on a timely basis?
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4. PPE Tracking And Monitoring 10) Can company assets be adequately identified for inventory purposes? 11) Establish responsibility for keeping log of inventory numbers 12) Establish how inventory numbers are allocated i.e. Manual or electronic. 1) Select, on a random sample basis, 5 capital assets from the Fixed Asset Register for appropriate tracking and monitoring and perform the following tests: Test existence by tracing the 5 items from the Register to the floor. 2) Select on the same basis another 5 items from the floor and trace to the Register. (test for completeness) 3) For the assets chosen in number 1 above, establish whether the assets were tagged with a visible asset number. 4) Perform a general review of the Fixed Asset Register. Assess completeness with which information regarding the asset is recorded What type of documentation exists on capital assets purchases? Does each “asset master record” include insurance information, warranty information, maintenance schedules and/or leasing information?
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13) Establish who has responsibility for ensuring that inventory for capital assets is conducted on a timely basis.
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