Internal Control of Fixed Assets A Controller and Auditor's Guide [Hardcover]

For many companies, fixed assets represent the largest single aspect of their financial statement, yet rarely do they command time proportionate to the magnitude of the investment. This is the first book to show how to implement internal controls for fixed assets. It is a step-by-step guide for developing and maintaining a functioning internal control system that will withstand the closest scrutiny from independent public accountants and the PCAOB. With up-to-the-minute discussion of IFRS and GAAP, this is a must-have guide for controllers, auditors, and CFOs.Preface.

Chapter 1: Internal Control, Sarbanes-Oxley, and the Public Company Accounting Oversight Board.

Internal Controls over Property, Plant, and Equipment—Mandatory but Weak.

Internal Controls over Working Capital.

Securities and Exchange Commission and Public Company Accounting Oversight Board Scrutiny of Financial Statements.

Why Do Auditors Not Spend More Time on Property, Plant, and Equipment?

Who Is Responsible for Internal Control over Property, Plant, and Equipment?

‘‘What Is So Hard about the Job?’’.

Note.

Chapter 2: Capitalization versus Expense.

Capitalization Theory.

Why Capitalization Levels Matter.

Consequences of Increasing Minimum Capitalization Level.

What Is the Optimum Capitalization Limit?

Summary.

Note.

Chapter 3: Asset Life Cycle—Controls and Software.

Software Is the Key.

Input, Output, and Reporting Capability.

How to Evaluate Software Vendors.

Assign Responsibility for Implementation and Beyond.

l3*