Fixed asset management involves tracking the lifecycle of property, plant, and equipment (PP&E) assets from initial capital authorization through daily operations to final retirement or disposal.
  ┌────────────────────────────────────────────────────────┐
  │                 FIXED ASSET LIFECYCLE CONTROLS         │
  └───────────────────────────┬────────────────────────────┘
                              ▼
  ┌────────────────────────────────────────────────────────┐
  │   CAPEX BUDGET ENGINE ──► Validates approval limits   │
  │   PP&E FIELD SENSORS  ──► Physical RFID tracking scan  │
  │   DEPRECIATION CALC   ──► Verifies useful life spans   │
  └────────────────────────────────────────────────────────┘

Internal auditors evaluate the controls governing the fixed asset lifecycle across three key touchpoints:
  1. Capital Expenditure (CapEx) Authorizations: Verifying that all asset purchases comply with delegated authority limits and receive appropriate board approvals before funds are committed.
  2. Physical Inventory Safeguards: Reviewing the use of asset tracking tools, such as barcoding or RFID tags, and auditing periodic physical counts of equipment to identify unrecorded disposals or asset impairments.
  3. Depreciation Engine Testing: Verifying that the depreciation methods applied to asset categories match documented corporate policies, and testing system calculations to confirm that useful life assumptions and residual values are updated to reflect actual operational wear and tear.

 
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