The six work program samples included in this tool highlight detailed procedures to consider when facilitating a fixed assets audit. Sample 1 of the Fixed Assets Audit Work Program focuses on ensuring that fixed assets are accurately capitalized, depreciated and accounted for to maintain the integrity of financial statements. This section emphasizes the importance of having clear policies for classifying items, determining their useful lives and calculating depreciation. Key tasks include reviewing acquisition accounting, understanding capitalization, and verifying the existence and utilization of assets. The sample also highlights the necessity of maintaining detailed property records for internal control purposes and recognizing gains or losses from asset dispositions.

Additionally, it addresses the need for consistent and approved depreciation methods that align with GAAP. Internal auditors are advised to investigate capitalization policies, test acquisition accounting, and ensure proper tagging and tracking of all assets. Special considerations include the tax treatment of fixed assets, industry-specific rules for mineral deposits, and the complexities of capital construction projects. Overall, Sample 1 provides a comprehensive framework for auditing fixed assets, ensuring that they are managed effectively and accurately reported in financial statements.

Project work steps include:

• Conduct a planning meeting to discuss scope, approach and timing.
• Determine the appropriate auditee contact.
• Determine if an internal audit of this area has been done previously.
• Obtain and review the policies and procedures for the property.