Printable checklist

Fixed asset audit checklist

A year-end checklist for statutory and internal auditors and for finance teams preparing for them: from the roll-forward to depreciation in both books, title, verification and disclosure.

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Entity
Financial year
Prepared by / date
Reviewed by / date

1. Planning

#	Check	Evidence to keep
1	Obtain the accounting policy for PPE: capitalisation threshold, methods, useful lives, residual values and component policy.	Policy note; prior-year file
2	Note any changes in policy or estimates since last year and the reasons.	Board or audit committee approval
3	Identify significant additions, disposals, CWIP projects and revaluations for the year.	Movement schedule; minutes

2. Roll-forward and completeness

#	Check	Evidence to keep
4	Opening balances agree with last year's audited figures for each class.	Prior-year Schedule III note
5	Opening + additions − disposals ± adjustments = closing, for gross block and accumulated depreciation, by class.	Roll-forward schedule
6	The register agrees with the general ledger at the year end.	Register-to-GL reconciliation
7	Repairs and maintenance accounts are scanned for items that should have been capitalised.	Expense ledger review

3. Additions and capital work-in-progress

#	Check	Evidence to keep
8	Additions are vouched to invoices, with cost built up from purchase price, non-refundable taxes, freight, installation and directly attributable costs.	Invoices; cost sheets
9	GST on which input tax credit is claimed is excluded from cost; blocked credit under s.17(5) is included.	GST working per invoice
10	Capitalisation date is the date the asset was available for use; items not ready remain in CWIP.	Installation or commissioning reports
11	CWIP is aged (less than 1 year, 1-2, 2-3, more than 3 years) and overdue or over-budget projects are listed.	CWIP ageing and completion schedules
12	Borrowing costs capitalised, if any, relate to qualifying assets and the correct period.	Borrowing cost working

4. Depreciation, Companies Act and Income-tax books

#	Check	Evidence to keep
13	Useful lives and residual values follow Schedule II, or the justification for any difference is documented and disclosed.	Technical advice; policy note
14	Depreciation is recomputed for a sample, including pro-rata for additions and disposals and any extra-shift charge.	Recalculation working
15	Significant components with different lives are depreciated separately.	Component schedule
16	Useful life, residual value and method were reviewed at the year end; changes applied prospectively.	Review memo
17	Income-tax depreciation is computed block-wise, with the 180-day rule, additional depreciation where eligible and s.50 where applicable, and agrees with Form 3CD clause 18.	Block schedule; tax audit report
18	Book and tax depreciation are reconciled and deferred tax on the difference is recognised.	Reconciliation; deferred tax working

5. Disposals, write-offs and impairment

#	Check	Evidence to keep
19	Disposals are supported by approvals, sale invoices and removal from the register; depreciation is charged up to the disposal date.	Approval; invoice; register
20	Gain or loss on disposal is computed against net book value and correctly posted.	Disposal working; journal
21	GST on the sale of capital goods on which credit was taken is paid as required by s.18(6).	GST working
22	Indicators of impairment (idle assets, damage, obsolescence) were considered and, where present, recoverable amount was assessed.	Impairment assessment

6. Existence, title and physical verification

#	Check	Evidence to keep
23	Physical verification was carried out as per the programme and discrepancies were dealt with in the books.	Verification report; discrepancy statement
24	A sample of assets is traced from the register to the floor, and from the floor to the register.	Audit test sheet
25	Title deeds of immovable property are inspected or confirmed, and exceptions are disclosed.	Title deed schedule; confirmations
26	Assets pledged or hypothecated as security are identified for disclosure.	Loan agreements; charge register

7. Controls and audit trail

#	Check	Evidence to keep
27	Accounting software keeps an audit trail of every change that cannot be disabled (Companies (Accounts) Rules, rule 3(1)).	Audit trail settings and sample log
28	Periods are closed after posting and back-dated changes need approval.	Period lock records
29	Access to the register is role-based; changes to cost, life or method are approved.	Access review; change approvals

8. Presentation, disclosure and conclusion

#	Check	Evidence to keep
30	The Schedule III PPE and intangible notes show opening, additions, disposals, depreciation and closing by class, with comparatives.	Draft notes tied to the register
31	Additional Schedule III disclosures are complete: title deeds not in the company's name, revaluation by a registered valuer, CWIP ageing and completion schedules.	Draft disclosures
32	CARO 2020 clause 3(i) responses are supported by evidence.	CARO 2020 fixed-asset checklist
33	Misstatements are summarised and the conclusion on PPE is documented.	Summary of misstatements; conclusion memo

Prepared by

Name

Designation

Signature

Date

Reviewed and approved by

Name

Designation

Signature

Date

Written for Indian companies following the Companies Act, 2013 (Schedule II and Schedule III) and the Income-tax Act, 1961. Free checklist from FixedAsset Pro.

General information, not tax or legal advice

This checklist is a working aid as at 23 October 2026. It does not replace the auditing standards, the Order's text or your auditor's judgment.