Accounting standards require proof of existence, and the external auditor's opinion rests on it. A physical count is therefore performed by a party independent of the custodial function, under a documented methodology the auditor can re-test on a sample.
We carry out physical counts of fixed assets and inventory at close dates or on periodic cycles, using double counting for high-value classes, movement controls during the count, and documentation of every discrepancy before the cycle is closed.
The report is detailed enough to trace from total down to a single line, with accuracy rates and variance ratios per site and per class — indicators that reveal where the control weakness actually sits.
Who this service is for
- Listed and externally audited companies
- Government entities in annual count cycles
- Warehouses and distribution centres
- Manufacturers counting spares and materials
- Financial institutions verifying collateral
How we work
- 01
Count plan
Setting the cut-off date, the count scope and movement controls during execution.
- 02
Independent counting
Teams independent of custody execute the count, with double counting for high-value classes.
- 03
Variance handling
Recounting discrepant lines and documenting the cause before close.
- 04
Results reporting
Accuracy and variance rates per site and class, with control recommendations.
Frequently asked questions
Can the count be performed exactly at the close date?
Yes, and it is preferable. We coordinate the cut-off and movement controls with the external auditor in advance; where that is not possible we count near the date and reconcile movements with documentation.
Do you count on a sample basis or in full?
Both are available: full counting for high-value classes or a first cycle, and statistical sampling for high-volume low-value classes, with the sampling basis documented.
Do you deal directly with the external auditor?
Yes, where authorised. We provide the auditor with the count methodology, working papers and variance report so they can re-test on a sample without additional demands on you.