The importance of an asset register to auditors

Jul 26 2011

Companies should have their business accounts audited each year and check that the businesses  and internal accounting control systems are representing an accurate view of the company’s financial performance, position and ability.

Auditors must ensure that the accounts they are auditing comply with accounting standards such as the Generally Accepted Accounting Principles (GAAP) framework, International Financial Reporting Standards (IFRS), the relevant Statement of Recommended Practice (SORP)  and component accounting requirements.

For this process to run smoothly, an efficient and compliant asset management register is recommended to ensure all the company assets are accounted for in accordance with the relevant requirements. 

Auditors rely on the internal accounting systems and controls set up by the company, so it is the role of the CFO within each company to ensure they have reliable, compliant financial systems to enable auditors to gain a true reflection of the business accounts.