The Measures Taken By The Auditor For Analyzing The Furniture And Other Property Assets Of A Business Company
Furniture is an essential requirement for all the business organizations. From the cupboard used for keeping the different documents and securities to the chairs and tables used by the business officials to execute their job, all these are really important for the company.
So, while considering this case, the Auditor should
- Examine if a proper quantitative record is being maintained by the client on the various furniture and fixtures used in the company premises.
- Further, he has to ensure if all the expenses related to the procurement of these items is duly recorded in the register along with the purchase price paid for it.
- Moreover, all these furniture products have to be properly insured by the firm and the Auditor should conduct a detailed inquiry on this.
- In addition, he should consider whether adequate provision has been made for depreciation on these things or not.
- He can readily go for the physical verification on a test check basis or can examine the management records and certificate to that effect.
- Above all, an Auditor must ensure that the details of all the damaged or useless furniture are completely written off and old ones are fully replaced by new types.
While considering the freehold properties of a company, an Auditor should
- Evaluate if all the property titles are correctly empowered to the client and should confirm whether it is a freehold type or not.
- If the properties including the lands and other buildings were purchased within a year, then the Auditor reviews this with the corresponding broker or solicitor in detail.
- Moving on, if a corresponding structural property has been made on a freehold land, then the same needs to be checked with the builder’s bill or the engineer’s certificate.
- In case if the title deeds are consigned with a mortgagee on a mortgage basis, then the corresponding certification needs to be verified by the Auditor.
- Also, if the title deeds are placed with the bankers for the security purpose, then the Auditor must get the respective certificate confirming this fact.
- However, the transference of the property should be in the client’s name and is properly registered too. An Auditor should certainly confirm this.
- He has to see if all the properties are duly insured on a periodic basis.
- In addition, an individual account has to be maintained by the client for dealing with the land and building category and the Auditor should ensure this.