Table of Contents
Chapter 1 - Auditing Fixed Assets1
| Auditor Objectives | 1 |
| Auditing Characteristics of Fixed Assets | 2 |
| Initial Fixed Asset Recognition | 3 |
| Auditing Activities | 3 |
| Inherent Risk Assessment | 3 |
| Material Misstatement Assessment | 4 |
| Fixed Asset Roll Forward Report | 4 |
| Substantive Procedures | 5 |
| Vouching New Acquisitions | 7 |
| Inspect Newly-Acquired and Older Assets | 7 |
| Review Repair and Maintenance Expenses | 8 |
| Verify Legal Ownership | 9 |
| Investigate Legal Encumbrances | 9 |
| Investigate Possible Impairments | 9 |
| Conduct Analytical Procedures | 10 |
| Review Presentation | 11 |
| Internal Controls Used by the Client | 11 |
| Activities for an Initial Audit | 13 |
| Fraud Issues | 14 |
| Review Questions | 15 |
Chapter 2 - Auditing Intangible Assets16
| Intangible Asset Auditing Activities | 17 |
| Goodwill | 17 |
| Goodwill Impairment | 17 |
| Goodwill Amortization | 18 |
| Goodwill Auditing Activities | 19 |
| Review Questions | 20 |
Chapter 3 - Auditing Depreciation21
| Depreciation | 21 |
| Straight-Line Method | 22 |
| Sum-of-the-Years' Digits Method | 22 |
| Double-Declining Balance Method | 23 |
| Units of Production Method | 25 |
| Land Depreciation | 26 |
| Land Improvement Depreciation | 26 |
| Depreciation Accounting Entries | 26 |
| Auditing Activities | 28 |
| Review Depreciation Policies | 28 |
| Test the Accumulated Depreciation Roll Forward Report | 29 |
| Test Depreciation | 29 |
| Impact of Adjustments to Fixed Asset Accounts | 29 |
| Activities for an Initial Audit | 30 |
| Fraud Issues | 30 |
| Review Questions | 31 |
Chapter 4 - Planning the Fixed Asset Audit32
| Preaudit Work | 32 |
| Requests for Client | 32 |
| Review Questions | 34 |
Answers to Chapter Questions35
Glossary38
Index40
Course Details
Author: Steven M. Bragg, CPA
Steven Bragg, CPA, has been the chief financial officer or controller of four companies, as well as a consulting manager at Ernst & Young. He received a master’s degree in finance from Bentley College, an MBA from Babson College, and a Bachelor’s degree in Economics from the University of Maine. He has been a two-time president of the Colorado Mountain Club, and is an avid alpine skier, mountain biker, and certified master diver. Mr. Bragg resides in Centennial, Colorado. He has written more than 300 books and courses, including New Controller Guidebook, GAAP Guidebook, and Payroll Management.
Publication/Revision Date: 6/14/2026
Course Exam Questions (online): 10 (multiple-choice)
Program Delivery Method: NASBA QAS Self-Study
Available Formats of Course Text: Downloadable PDF, Printed/Mailed
Course Level, Prerequisites, and Advance Preparation Requirements
| License | Course Level | Prerequisites | Advance Preparation Requirements |
|---|
| CPA | Overview | None | None |
* This program is appropriate for professionals at all organizational levels.
Sponsor ID Numbers
National Registry of CPE Sponsors I.D.: 107615
State CPA Board Sponsor ID Numbers (where applicable)
Florida Division of Certified Public Accounting: 0004761
Hawaii Board of Public Accountancy: 14003
New York State Board for Public Accountancy: 002146
Ohio Accountancy Board: CPE .51 PSR
Pennsylvania State Board of Accountancy: PX178025
Texas State Board of Public Accountancy: 009349
Learning Objectives
As a result of studying the course material, you should be able to meet the objectives listed below:
- Recognize the accounts in which fixed assets are typically recorded.
- Specify the changes in a fixed asset audit, based on the types of assets being audited.
- Cite the situations in which inherent risk is more likely to be high.
- Describe the fixed asset roll forward report.
- Recognize the ways to detect assets that were dispositioned but not recorded.
- Specify the circumstances that can trigger a possible asset impairment.
- Describe the rules relating to goodwill amortization.
- Cite the auditing tasks to be completed when examining a client's depreciation.
- Recognize the types of fixed asset reports that can assist an auditor.
