Control procedures consist of practices and procedures in addition to the control environment, established to achieve certain specific objectives. For each of the procedures listed below, explain the purpose of the control procedures and state the tests of control you would perform to confirm that the control objective was being achieve; .The maintenance of a fixed assets register.

Maintenance of a fixed assets register.

A fixed assets register is a list of all the fixed assets owned by a company. The company requires a fixed asset register in order to control and identify all the fixed assets, which it owns. The register should show: –

i. The serial number allocated to the asset. (Ideally, each asset should have its own unique identity number).
ii. Details of the type and specification of asset.
iii. Name of the supplier and date of purchase of the asset.
iv. Cost of the asset
v. Rate of depreciation and total depreciation charged to date.
vi. Location
vii. Expenditure incurred by way of maintenance and repair charges on the asset.
viii. Current net book value of the asset.

Every year, the auditor should select some items from the fixed asset, register and physically check their existence and condition. This ensures that items shown in the balance sheet are still in existence and are in good condition and have not been scrapped without a record being made in the accounting records

The company should also require that individual assets are checked against the fixed asset register on a regular basis and that periodically the register is reconciled to the nominal ledger, as part of its internal control system



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