How to Effectively Prepare for an Asset Audit
Preparing your business for an asset audit might seem like a daunting task. That’s why it is imperative for you to bring on the credible person for the job – whether it be an auditor, engineer, or subject matter-expert for the evaluation process.
If you’re looking to conduct an equipment appraisal as part of the process, know that prospective buyers are looking for equipment for the best possible value. So while the task at hand may seem grueling, it is essential that you prepare and follow through accordingly to ensure you reclaim the best possible value – especially if your intention is to enter the auctioning off process.
Today our goal is to briefly go over what you should expect and how to effectively prepare for an asset audit.
Know Your Reasons
Making the decision to get an asset audit is based on a myriad of reasons. Common reasons why you might opt for an asset audit include:
- An assurance that daily operations are reflective of business practices
- To uncover any inconsistencies so they can be properly corrected
- To ensure your business’s financials are organized
- To demonstrate a pre-emptive approach to improving equipment processes
- As preliminary preparation for an equipment appraisal needed before entering the auction stage
Meeting Objectives
As much as the audit process may seem like a hassle, there are some practical benefits to effectively meeting and passing the demands of an asset audit:
- Evaluation of asset performance, efficiency, and affiliated costs
- Assurance of revenue
- Improvement of operations and mitigation of potential risk
- Meet the needs of Schedule-A Bank lenders
Settling Expectations
The following are a set of steps you can take to effectively prepare for the auditing process. Remember, a successful audit is the result of before the audit formally takes place.
- Compile a file of records regarding fixed assets, debt agreements, accounts, transactions, previous equipment appraisals etc.
- Track your assets and maintain a credible and up-to-date record of your business’s needs
- Understand what your auditor’s needs are – before formally meeting your auditor, cultivate a preliminary understanding of what your auditor will need
