What Is an Equipment Audit?

Equipment is considered to be an asset for your business or personal holdings. A vehicle, such as, would be considered to be equipment and an asset because it has value. In order to make sure that equipment is being maintained to the highest of standards, an audit of that equipment should be taken at least once per year so that any issues that diminish the value of the asset can be immediately resolved. It goes beyond value, however, because regular equipment check up can help to make equipment safer to use as well.

Equipment Audits Verify Assets

Many organizations choose to do yearly equipment audits because they want to make sure they actually have all the equipment listed on their asset sheet. These audits help to keep employees honest and the equipment where it is supposed to be. The first step in many equipment audits then is to make sure that the equipment is at the physical location that it is assigned to be at. If it is not, then the auditor will file the proper documentation based on policies and rules of the auditing company and hiring corporation and attempt to find the asset.


What Happens During an Equipment Audit?

Many audits begin with a visual inspection of the equipment. The auditor with thoroughly look at all the components of the equipment to make sure they are in good working condition. This visual inspection will also note any mechanical repairs that may have been made, that need to be made, or upgrades that could be made to make the equipment run more efficiently. If there are any severe issues that would include the value of the asset or the safety of those operating the equipment, the auditor may choose to immediately take the equipment out of service as well.

Why Choose To Do an Equipment Audit?

The nature of having assets with value is that there are tax implications associated with that value. Equipment check up can help to verify a proper level of depreciation that is not above and beyond what someone is able to claim on that value. Too much depreciation of the equipment and a company will lose overall value because the asset is worth less than what they are forced to claim. If there is too much depreciation taking place, a care plan can then be developed for the asset so that it can keep as much value as possible for as long as possible.

Are You Doing Equipment Audits?

Though the average person doesn't need to do so, the average business owner should do one. Equipment check up doesn't have to include major pieces of equipment to be beneficial - the home-based business can do an equipment audit of their computer, printer, and peripherals annually to make sure they are in the best working order possible. With the right equipment operating the right way, a business is able to do business more effectively. That's ultimately why equipment audits are integral to the process of asset care.

KBA provides systematic and independent equipment audit for project operations. Each audit is carried out in accordance with the internationally recognized standard of the International Marine Contractors Association (IMCA).