it is the process of
actually checking and inspecting a company’s tangible assets
- like machinery, furniture, vehicles, or equipment - to
confirm they exist, are in usable condition, and match what’s
recorded in the books.
It helps businesses:
- Confirm existence – ensuring assets listed in records are physically present.
- Check condition – verifying whether assets are operational or need repair/replacement.
- Check condition – verifying whether assets are operational or need repair/replacement.
- Ensure compliance – aligning with accounting standards and audit requirements.
- Support financial accuracy – keeping balance sheets reliable and up to date.