Fixed Assets Audit in Delhi | Fixed Asset Register, Depreciation & CARO 3(i)

In a Nutshell: Make the Fixed Asset Register Match Reality and the Law

A fixed assets audit tests whether every asset on the balance sheet exists, is recorded at the right cost, is depreciated correctly and legally belongs to the business. Startup Advisory reviews the fixed asset register end to end and reconciles it to the books, the tax depreciation schedule and the ground.

Register: completeness, asset-wise details (cost, date, location, custodian, useful life) and reconciliation to the general ledger.
Capitalisation: capital vs revenue tests, directly attributable costs, borrowing costs, and componentisation under AS 10 / Ind AS 16.
Depreciation: Schedule II useful lives for companies, plus block-wise WDV under the Income-tax Act — and the deferred tax gap between them.
CARO 2020 clause 3(i): records, physical verification, title deeds in the company’s name, revaluation and benami proceedings.
Pairs with: asset verification and tagging for the physical side.
Provider: Startup Advisory, CA firm in Saket, New Delhi 110030. Call 9311972982.

Reviewed by CA Neeraj Rohilla, FCA — Chartered Accountant, Startup Advisory, Saket, New Delhi.

Fixed Assets Are Where Small Errors Compound for Years

A repair wrongly capitalised, an asset scrapped but never removed, depreciation run at the wrong rate since 2019 — each is small in the year it happens and large by the time a buyer, a lender or the statutory auditor asks for the register. A fixed assets audit fixes the register once, properly, and sets up a process that keeps it right.

What we review

Fixed asset register (FAR): every asset with cost, date put to use, location, custodian, useful life and depreciation method; reconciled line by line to the trial balance.
Additions: invoices, capitalisation date, capital vs revenue classification, and whether freight, installation and pre-operative costs are rightly included.
Disposals and write-offs: sale proceeds, profit or loss on sale, board approvals, and removal from both the books and the tax block.
Depreciation: useful lives and residual value under Schedule II of the Companies Act, 2013 (or the entity’s policy for non-companies), and income-tax depreciation by block at prescribed WDV rates.
Capital work-in-progress: project-wise CWIP with the ageing schedule required by Schedule III, and capitalisation once the asset is ready for use.
Impairment: indicators of impairment under AS 28 / Ind AS 36 for idle, damaged or under-utilised assets.
Title and charges: title deeds of immovable property, lease agreements, and charges registered with lenders.
Insurance: cover by location and value against the register.

CARO 2020 clause 3(i): what the statutory auditor will ask

For companies covered by the Companies (Auditor’s Report) Order, 2020, the statutory auditor must report whether the company maintains proper records of property, plant and equipment and intangible assets; whether PPE has been physically verified by management at reasonable intervals and how material discrepancies were dealt with; whether title deeds of immovable property are held in the company’s name; whether any revaluation was done by a registered valuer; and whether any benami proceedings are pending. Our audit is structured to give you evidence on each of these before the statutory audit begins.

Deliverables

Clean, reconciled FAR in Excel or loaded into Tally, Zoho or your ERP.
Adjustment schedule with proposed journal entries for misclassifications, missed disposals and depreciation corrections.
Book vs tax depreciation workings including the deferred tax computation.
Observation report with control recommendations for capex approval and asset movements.

If assets have never been physically verified, or there are no asset tags, we recommend combining this review with asset verification and tagging, so the register is matched to what is actually on the floor.

Related Audit & Assurance Services

Asset Verification & Tagging →Physical verification of every asset, barcode/QR tagging and a fixed asset register reconciled to the ground.

Statutory Audit →Annual statutory audit of companies under the Companies Act, 2013 and of LLPs above the audit limits — with CARO 2020 reporting.

Stock Audit →Bank-mandated stock audits for working capital borrowers — physical verification, valuation, ageing and drawing power.

Internal Audit →Risk-based internal audit under Section 138 — process reviews, control testing and quarterly reports to the board or audit committee.

See all audit & assurance services

Frequently Asked Questions

It is a review of the fixed asset register and the related accounting: whether assets exist, are recorded at the correct cost, are correctly depreciated, are owned by the entity and are properly disclosed. It usually includes a reconciliation of the register to the books and to the tax depreciation schedule.

There is no standalone legal requirement for a separate fixed assets audit. But for companies covered by CARO 2020, the statutory auditor must report on fixed asset records, physical verification and title deeds under clause 3(i), and a weak register leads to adverse remarks. Lenders, acquirers and insurers also ask for it.

Companies depreciate over the useful lives in Schedule II of the Companies Act, 2013 (or other lives the company can justify), usually on straight-line or WDV basis per asset. The Income-tax Act allows depreciation by block of assets at prescribed WDV rates. The two almost always differ, and the difference creates a deferred tax item.

CARO 2020 asks whether verification is done at reasonable intervals having regard to the size of the company and nature of its assets. Many companies follow a programme that covers all assets over a cycle of up to three years, with high-value or portable assets checked more often.

They are investigated and, with board approval, written off, with the corresponding adjustment in the tax block. Material discrepancies and how they were dealt with are reported by the statutory auditor under CARO.

It depends on the number of assets, locations and how far the register is from the books. We scope it and quote a fixed fee before starting. Call 9311972982.

Our Testimonials

Vishal Singh

Best CA service. He provided the best solution at the last moment. Thanks for your service.

Ajay Philip

It was wonderful to work with KNAP. Good knowledge on taxation with prompt response.

Pranshu Gaur

Had a great experience working with Neeraj for my income tax filing. Would definitely recommend him to friends and family.

Ravish Mehta

KNAP was professional in all their dealings with us. Their processes were extremely clear and easy to understand. The project team associated with us kept us in loop on daily basis. Overall it was a good experience with them.

Mohit Aggarwal

I recently used KNAP ADVISORY for assistance with company registration and compliance, and I must say, I am thoroughly impressed with their service. From start to finish, they demonstrated a high level of professionalism and expertise that exceeded my expectations.

Sanjeev Sharma

Your professional team has shown outstanding dedication and merit recognition.

Realtoadvisors

Excellent very prompt service. Well experienced team members. Trusted company, we would like to recommend KNAP ADVISORY if you have any type of corporate registration, they serve client's from Pan India every states & best part the service charge is very reasonable.

Sakshi Gupta

I am extremely delighted by the quick service of KNAP advisory team . They assisted me in the registration of my company within a short span of time. Not only this, they took care of every little thing which is required after the registration as well. Their professionalism, quick service and punctuality has amazed me. My experience with KNAP has been captivating and mesmerising. I would like to express my gratitude to Mr. Vipin and Mr. Neeraj who have taken care of every thing in this process.

Rudranath Trip

Knap Advisory's personalized approach sets them apart in the realm of CA consulting. Their team not only possesses a strong grasp of accounting principles but also goes the extra mile to understand the intricacies of your business. I appreciated their attention to detail, which translated into accurate financial analysis and strategic advice. The efficiency and transparency displayed throughout our interactions solidify Knap Advisory as a trustworthy partner for navigating complex financial landscapes.

Yash Rohilla

Knap Advisory is a standout CA consulting firm that impressed me with their expertise and commitment. Their team demonstrated in-depth knowledge of tax regulations and provided tailored solutions for my business. Timely responses and clear communication made the collaboration seamless. I highly recommend Knap Advisory for their professionalism and reliable financial guidance.

Sandro Cottus

Knap Advisory provides best service in their domain.

Azan Hosein Photography

Awsum and fast service and the company and the employes are very Co-operative excellent service regarding company registration and enrolment.

Neetu Yadav

What sets Knap Advisory apart is their dedication to delivering exceptional client service. The team was highly professional, responsive, and always available to address my questions and concerns. They fostered a collaborative and communicative environment, making me feel valued as a client and ensuring that my specific needs were met.