Physical verification

Physical verification is the process of comparing an organization's official list of assets to the actual assets. By conducting this examination in person, auditors are confirming that the assets listed on an entity's balance sheet are real. If the assets cannot be found, then they are assumed to have been dispositioned, and are written off in the firm's accounting records. Without this audit step, there is a risk that a company's assets will be overstated.

Related Courses

How to Audit Fixed Assets 
How to Audit Inventory 
How to Conduct an Audit Engagement