The noncurrent asset register is the subsidiary ledger detailing the individual items of plant and equipment. The register records the cost of each asset and of any additions or alterations and the accumulated depreciation charged against it. Balances in the register reconcile with the written down value of the plant and equipment account in the general ledger.
The following are audit procedures to confirm the accuracy of the non-current asset register:
- View the reconciliation of the register to the general ledger account (confirm the general ledger account balance)
- Select a sample of the assets from the register and physically inspect these assets to prove their existence. Similarly, from noncurrent asset inspection select a sample of assets and trace them to the register. This confirms both the completeness and accuracy of the register as well as the existence of the assets.
- Ensure all the items scrapped/disposed off during the year are no longer included in the register.
- For the sample of assets in the register recalculate the depreciation charge.