Fixed Asset Verification

The physical verification of assets is an essential requirement under the Companies (Auditor’s Report) Order, 2020 (CARO 2020), notified by the Ministry of Corporate Affairs (MCA) on 25th February 2020. Clause 1 of the order mandates the management to conduct regular physical verification of both tangible and intangible assets at reasonable intervals to ensure accurate records and compliance with accounting standards.

As per Para 3(i)(b) of CARO 2020, the auditor's report must include a statement regarding whether Property, Plant, and Equipment (PPE) have been physically verified by the management at reasonable intervals. Additionally, any material discrepancies identified during the verification must be addressed appropriately in the company's books of account. This process helps ensure transparency and accuracy in asset reporting.

Management’s Responsibility

Ensuring assets are verified at reasonable intervals.

Discrepancy Handling

Identifying and addressing material discrepancies.

Compliance with CARO 2020

Adhering to reporting requirements under MCA.

Independent Verification

Offering professional opinions to support management.

We provide professional fixed asset verification services to relieve management of the burdensome task of physical verification. Our independent review ensures accurate records and compliance with statutory requirements.