Inventory & Fixed Asset Verification
Physical reconciliation to book records, leakage identification, and audit-grade evidence — for year-end audit, ERP migration, insurance, or investor due diligence.
Direct Answer
Physical verification reconciles book records to physical inventory/assets, identifies leakage, and produces audit-grade evidence. Common triggers: year-end audit, ERP migration, insurance claims, investor due diligence, restructuring.
Who this is for
- PT PMAs with year-end audit requirements where external auditors require observation or verification
- Manufacturing, distribution, and retail companies with multi-site inventory
- Companies migrating from one WMS or ERP to another
- Groups acquiring an Indonesian business and needing due diligence verification
- Companies preparing insurance claims requiring physical asset evidence
- Entities restructuring or spinning off operations with asset transfer obligations
Problems we solve
- —External auditors have qualified on inventory observation due to inaccessibility
- —Fixed asset register is out of date — disposed assets still appear, new assets not added
- —Physical inventory count conducted by management fails auditor independence standards
- —Multi-site operations make internal verification impractical without specialist coordination
- —Insurance underwriter requires independent verification of insured asset values
- —ERP migration requires opening balance validation that internal teams cannot certify
Our approach
- 1
Scope and cut-off planning
We agree scope — locations, asset categories, count methodology — and establish cut-off procedures to prevent movement between count dates and book close.
- 2
Pre-count preparation
We review existing fixed asset registers and inventory records, identify known gaps or discrepancies, and prepare count sheets and observation templates.
- 3
Physical count and observation
Our teams attend all agreed locations to perform or observe physical counts. We apply tagging, bar-code scanning, or manual count methods appropriate to the asset category.
- 4
Reconciliation to book records
We reconcile physical counts to the fixed asset register or inventory system, quantify variances, and identify unrecorded disposals, additions, or condition impairments.
- 5
Evidence packaging and reporting
We deliver a formal verification report with supporting count sheets, photo documentation, variance analysis, and management action items — in a format accepted by external auditors.
Deliverables
Regulatory framework
Frequently asked questions
Related case studies
Multi-Site Fixed Asset Verification — Manufacturing Group
Four-site fixed asset verification for manufacturing group ahead of annual statutory audit. Identified 11% of assets not in register and 8% disposed but still recorded.
3,400+
Assets verified
Year-End Inventory Observation — Distribution Company
Independent inventory observation across three distribution centers. Provided audit-grade evidence to international external auditors who could not attend.
99.2%
Count accuracy
Ready to talk Indonesia compliance?
Partner-led response within one business day. NDA available on request.