Bookkeeping & Outsourced Accounting — Asset & Inventory Verification
A fixed asset register or stock count that hasn't been physically verified against reality is a common source of overstated balance sheets — equipment long disposed of, or inventory that shrank without anyone noticing. FMCA physically verifies assets and stock against the accounting records, closing the gap before an auditor or investor finds it first.
Reviewed by FMCA's Senior Accounting Advisory Team — CPAs and former Big Four auditors serving 500+ UAE and KSA SMEs.
Four areas of work, confirming what's on the books actually exists and is valued correctly.
Every item on the register physically confirmed to exist, still be in use, and be correctly located.
A physical count matched against recorded stock levels, with variances identified rather than assumed away.
Depreciation methods and useful lives checked against how assets are actually used, not carried forward on autopilot.
Disposed, obsolete or impaired assets and stock identified and written off correctly, not left inflating the balance sheet.
A register or stock count that's never physically checked drifts from reality quietly, then surfaces all at once.
Auditors test physical existence as standard procedure — assets or stock that can't be located can trigger a qualified opinion.
Theft, spoilage or misplacement in inventory goes undetected indefinitely without a physical count to catch it.
"Ghost" assets and stock still on the books after disposal or loss overstate the balance sheet to investors and lenders.
Verified figures feed directly into IFRS financial statements and your bookkeeping records, rather than sitting as an unverified assumption.
The right cadence depends on inventory value and turnover, not company size alone.
Our Approach
A register that reconciles internally can still be wrong if nothing on it has been physically checked. FMCA verifies assets and stock against the floor, the warehouse and the site — not just against another spreadsheet.
How We Work
Illustrative scenarios based on the kind of work we do — not descriptions of specific named clients.
A physical verification found several fixed assets long since disposed of but still carried on the register, corrected before the year-end audit.
A cyclical stock count identified a shrinkage pattern concentrated at one location, prompting a targeted investigation rather than a blanket write-off.
A depreciation schedule based on outdated useful-life assumptions was reviewed and corrected to reflect how the equipment was actually being used.
Related Insights
FAQ
At minimum annually, typically ahead of an audit — high-value or fast-moving inventory often benefits from more frequent cyclical checks throughout the year.
It's investigated and, if genuinely disposed of or missing, written off the register correctly rather than left as an unresolved discrepancy.
Auditors typically test physical existence of significant fixed assets and inventory as standard procedure — having this already verified smooths the audit process considerably.
Yes — verification is scoped across every relevant site, not just a single primary location.
Both — physical verification is paired with a review of whether depreciation methods and useful lives still reflect how assets are actually used.
Tell us where things stand and a senior consultant will get back to you directly — not a call centre.
