With the fiscal year-end approaching, annual audits are right around the corner. This means it’s time to prepare. While preparation for asset audits normally sends shivers down your spine, this year it doesn’t have to.
When it comes to fixed-assets, there are a number of ways to prepare. Below we listed a quick, three tip guide to help you prepare for you audit.
By following the three tips we’ve listed below, annual asset auditing should be a cake walk.
First things first, you need to plan ahead. One easy way to do this is to consider creating a proactive internal audit plan. This means devoting time to small things, such as proper documentation throughout the year, can help to reduce time and stress involved in last-minute asset audit preparation. For example, you could be sure to document asset purchases as they happen. This will not only make your auditor happy, but will save time come end of the year trying to hunt everything down.
While it may seem like there is no time to perform a random sample inventory, if you follow tip one, planning ahead, you should have plenty of time to conduct an inventory through random sample. In this type of inventory, a small, random subset of assets needs to be inventoried and then identified by a statistically valid sample. This means it needs to represent all of the items in your inventory.
After a physical inventory has been completed, we encourage you to take some time to review your organizations current policies and procedures when it comes to asset tracking. Realistically, the inventory likely revealed some gaps in your process. This opens up a great opportunity to clarify or adjust current processes to ensure all policies and procedures are being followed appropriately.
The key to a successful audit is clean and accurate data. One way to ensure your data is clean, is to invest in an automated asset management software. Benefits that can be reaped from this investment include time and money savings, along with clean and accurate data you can depend on come time for your audit.
The right automated asset management software should allow you to have all you asset information in one centralized location that is right at your fingertips. It’s a great tool to have come time for an annual audit because it eliminates the process of digging through old emails and documents to find information the auditor may need. An automated asset management system can also help to keep asset information organized throughout its lifecycle and also eliminate human error.