Conducting Physical Audits

A physical asset audit is a systematic count and inspection of assets at a specific location to verify that the records in AccuArk match what is physically present. Regular audits identify missing assets, condition changes, and location errors before they become significant problems. This article walks through the entire audit process from start to finish.

What Is a Physical Audit?

A physical audit answers three questions:

1. Are all assets present? — Every asset the system says should be at the location is verified as physically present.
2. Are they in the expected condition? — Each asset's actual condition is compared to the condition recorded in the system.
3. Are there unexpected assets? — Any assets found at the location that the system does not expect to be there are identified.

The audit creates a formal record of findings that can be used for insurance purposes, regulatory compliance, financial reporting, and internal accountability.

How to Access

Navigate to Assets > Physical Audit from the main menu bar. This opens the FrmPhysicalAudit form.

Required Permission

You must have the Asset Admin permission to access the Physical Audit screen. If you do not see the Physical Audit option under the Assets menu, contact your administrator to verify your role includes this permission.

Starting an Audit

To begin a new physical audit, configure the following parameters and click Start:

Location (Required)

Select the location you will be auditing from the Location dropdown. The system will generate the expected asset list based on all active assets assigned to this location. You can only audit one location at a time.

Zone (Optional)

If the selected location has zones defined (e.g., Warehouse A, Floor 2, Storage Room B), you can optionally select a zone to narrow the audit scope. When a zone is selected, only assets assigned to that specific zone within the location are included in the expected list. Leave this blank to audit the entire location.

Audit Date (Required)

Set the date of the audit. This defaults to today's date. The audit date is recorded on the audit record and all associated findings for historical reference.

Notes (Optional)

Add any notes about the audit — for example, the reason for the audit, who is conducting it, or special instructions. These notes are saved with the audit record.

What Happens When You Click Start

The system creates a new audit record and generates the Expected Asset List — a complete list of all active assets assigned to the selected location (and zone, if specified) based on current records. This list becomes the baseline against which you compare your physical findings.

The Expected Asset List

After starting the audit, the main screen displays a grid showing every asset the system expects to find at the audited location. Each row includes:

Assets are listed in order by asset number. The total count of expected assets is displayed at the top of the screen.

Scanning and Recording Assets

For each asset you physically find at the location, you need to record it in the audit. There are three ways to locate an asset in the list:

Barcode Scanning

If your assets have barcode labels, use a barcode scanner connected to your computer. Place the cursor in the scan field and scan the barcode. The system automatically finds the matching asset in the expected list and highlights it.

Search by Asset Number

Type the asset number (or a portion of it) in the search field and press Enter. The system filters the list to matching assets.

Search by Name

Type part of the asset name in the search field. The system filters the list to show assets with matching names.

Recording a Found Asset

Once you have located the asset in the list, click Mark as Found. You will be prompted to select the observed condition from a dropdown:

• Good — Asset is in normal, expected working condition
• Fair — Asset shows signs of wear but is still functional
• Poor — Asset has significant wear, damage, or performance issues

The asset's status changes from "Not Scanned" to "Found" and the observed condition is recorded. If the observed condition differs from the expected condition, the row is highlighted to indicate a condition discrepancy.

Assets Not Found

Any asset that remains in "Not Scanned" status when you complete the audit is automatically categorized as Not Found. You can also explicitly mark an asset as Not Found if you have confirmed it is not at the location.

Unexpected Assets

If you find an asset that is not on the expected list (it belongs to a different location according to the system), click Add Unexpected and scan or enter the asset number. The system adds it to the audit record as an unexpected finding, which may indicate an unrecorded transfer.

Completing the Audit

After you have scanned all assets at the location, click Complete to finalize the audit. The system calculates the audit summary:

Once completed, the audit is locked and can no longer be modified. All findings are preserved for reporting and review.

Discrepancy Types

The audit identifies three types of discrepancies:

Not Found

An asset that the system says should be at the location but was not physically found. This could indicate:

• The asset was transferred to another location without updating the system
• The asset was lost, stolen, or misplaced
• The asset was disposed of without recording the disposal
• The asset is at the location but was overlooked during the audit

Condition Changed

An asset that was found at the location but in a different condition than the system records. For example, the system records the asset as "Good" but the auditor found it in "Poor" condition. This could indicate:

• Normal wear and tear that was not updated in the system
• Damage or deterioration since the last update
• The previous condition assessment was incorrect

Unexpected

An asset found at the location that the system does not expect to be there. This could indicate:

• The asset was transferred to this location without updating the system
• The asset was checked out and brought to this location temporarily
• A data entry error in the asset's assigned location

Audit Discrepancy Report

After completing an audit, you can view detailed results by navigating to Reports > Assets > Audit Discrepancy. This report shows:

• The audit date, location, zone, and conducting user
• A summary of all metrics (expected, found, not found, condition changed, unexpected)
• A detailed list of every discrepancy with the asset's expected status/condition and the actual finding
• The ability to export the report to CSV or PDF for distribution and record-keeping

This report is the primary deliverable from a physical audit and should be reviewed by management to determine corrective actions.

Resolving Discrepancies

After reviewing the audit results, take appropriate action for each discrepancy:

For Not Found Assets

1. Search other locations — The asset may have been moved without recording a transfer. Check adjacent areas and other company locations.
2. Check checkout records — The asset may be temporarily checked out to an employee.
3. Interview employees — Ask staff who regularly use or manage the asset about its whereabouts.
4. Record the finding — If the asset truly cannot be located, consider initiating a disposal or write-off after appropriate investigation.

For Condition Changed Assets

1. Update the asset record — Change the condition in the asset register to reflect the observed condition.
2. Schedule maintenance — If the condition has deteriorated, schedule maintenance or repair.
3. Evaluate impact — Determine if the condition change affects the asset's usability, value, or depreciation schedule.

For Unexpected Assets

1. Update the location — If the asset legitimately belongs at this location now, update its assigned location in the asset register.
2. Record the transfer — If the asset was moved, create a formal transfer record to maintain the audit trail.
3. Investigate — Determine how the asset arrived at this location and why it was not recorded.

Tips and Recommendations

• Conduct audits quarterly for high-value locations. Locations with expensive equipment (server rooms, manufacturing floors, vehicle yards) benefit from more frequent auditing.
• Conduct audits annually for all locations. Every location should be audited at least once per year to maintain accurate records.
• Use barcode scanning for speed. Scanning is significantly faster than manual search and eliminates transcription errors. If your assets do not have barcodes yet, consider a barcode labeling project before your first audit.
• Photograph assets with condition issues. When you observe a condition change, take a photo with your phone or tablet for documentation. Attach it to the asset record after the audit.
• Audit in teams. For large locations, divide the space into zones and assign teams to each zone. This reduces audit time and improves accuracy.
• Schedule audits during low-activity periods. Auditing during business hours can be disruptive. Early mornings, evenings, or weekends may be more practical for locations with heavy daily activity.
• Compare audit results over time. Tracking match rates across multiple audits reveals whether your asset tracking processes are improving or deteriorating.
• Act on findings promptly. An audit is only valuable if discrepancies are resolved. Create an action plan within one week of completing the audit.

Related Articles

• Asset Register & Search
• Asset Transfers
• Asset Disposal
• Barcode & Label Printing
• Asset Reports Overview