The Financial Audit Complexity of The Fixed Assets

Sorin Domnisoru, Sorin Vinatoru
European Research Studies Journal, Volume XI, Issue 4, 49-62, 2008
DOI: 10.35808/ersj/201

Abstract:

The paper shows concretely and in detail a part of what can means the auditing of fixed assets, the challenges and threatening of this field. For showing the complexity of the issue analysed, it is starting from the too much general and sinthetic of the broached issues into specialized literature, but whithout to minimize their importance. For tangible fixed assets, selected as basis of our research, there are presented the co-ordinates of the methodological approaching: the nuances of the financial reporting background and identification of the adequate one, the profile and amplitude of the audited entity, the place of tangible fixed assets into relations system of the organization, the connection between the orientation towards processes and existences examination and so on. In order to answer of the question what means to audit from financial view aspects of such issue, there are revealed following elements: the understanding of the specific internal control, the estimating of the control risk, as well as the costs and advantages assessing of the internal control mechanisms testing. Identifying and explaining the content of the most important internal control mechanisms, regarding the assessment of this, as well as the substantial tests of the operations from a sequence, it is emphasized the amplitude, the difficulty and risks associated of the whole, respectively of the fixed asset auditing.


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