Free template
Physical verification of fixed assets: a practical process
Once a year, often in March, someone has to prove that what the register says is really there. This is the process that keeps it to days instead of weeks, and a count sheet you can print for each office.
Updated 30 October 2026
Why it is done
Physical verification compares the asset register with what is actually there, and fixes the difference. For companies covered by CARO 2020, the statutory auditor reports whether management has physically verified property, plant and equipment at reasonable intervals, and how any material discrepancies were dealt with. Even without that, it is the only way to find the laptops that quietly left with people.
The process, step by step
Do one office at a time. Large offices can be split by floor.
- Fix the date and the register “as of” date, and freeze the list of what should be at each office
- Label everything that is not labelled yet, so the count is by tag, not by description
- Count: walk the office with the sheet, mark each item Found or not, and note its condition
- Note items you find that are not in the register, and items from another office
- For laptops with people working from home, ask each person to confirm what they hold
- Reconcile: investigate each missing item before calling it lost
- Report the totals, get the count signed, and correct the register
The format
Copy it as it is, or download the Word file and add your logo.
Physical verification count sheet
- Company name
- Office / location
- Date of count
- Register as of
- Counted by
- Verified by
Items counted
| # | Asset tag | Description | Serial number | Per register | Found? | Condition |
|---|---|---|---|---|---|---|
| 1 | LAP-0142 | Dell Latitude 5440 | 5CG3xxxxxx | Priya S., Sales | Yes | Good |
| 2 | MON-0233 | Dell 24” monitor | CNxxxxxxxx | Store room | Yes | Good |
| 3 | LAP-0098 | HP EliteBook 840 | 5CD1xxxxxx | Rahul V., Ops | No | — |
| 4 | MON-0310 | LG 27” monitor | 908Nxxxxxx | Not in register | Yes | Fair |
Example rows. The Word file has empty rows to fill in.
Summary
- Expected (per register)
- Found
- Missing
- Found but not in register
- Damaged
- Remarks
Counted by: name, signature and date
Verified by: name, signature and date
Reconciling what you did not find
Most “missing” items are not lost. They are with someone who changed office, in repair, or recorded under a different tag. Check transfers, repairs and people who left before you write anything off, and record the reason for every adjustment so the auditor can follow it.
How often
At least once a year for the whole register. For laptops and phones, which move most, a quarterly count of each office, or a self-audit where every employee confirms what they hold, catches problems while people still remember what happened.
Count with a phone instead of a printout
In AssetVow a stock count freezes the expected list for an office; you scan QR labels with a phone camera or tick items, items from other offices are noted, and closing the count marks the rest as missing. Self-audits ask each person to confirm what they hold.
See how it worksFAQ
Common questions
How often should physical verification of fixed assets be done?+
At least once a year, and more often for portable items like laptops. Many companies count each office quarterly and the whole register at year end.
Who should do the counting?+
Someone other than the person who keeps the register, with the register owner available to answer questions. Both sign the count sheet.
What do we do with items found but not in the register?+
Find the purchase record, add them to the register with their cost and date, and label them.
Is a phone photo enough evidence?+
A signed count sheet with each item’s tag, serial and condition is the usual evidence. Photos help for damaged items.
Make the next count a morning’s work
Import your register, print QR labels and run a stock count from your phone. Free for 30 days.