How to audit fixed assets procurement in SAP

Posted by Prof. Dr. Nick Gehrke on Nov 23, 2016 5:05:00 PM

Part III of the series: "Digitization of auditing SAP Fixed Asset and Inventory Processes"

Today's blog post provides you with three interesting indicators for uncovering process weaknesses in the area of procurement of fixed assets and implausible procedures in fixed assets.

 

1. Auditing SAP processes in fixed asset and inventory
2. Master Data audit of SAP fixed assets
3. How to audit fixed assets procurement in SAP
4. SAP data analytics for fixed asset depreciation
5. Auditing fixed asset retirement in SAP
6. Process analytics for SAP current asset transactions
7. Segregation of Duties in SAP asset management
8. Fixed asset data structure in SAP
9. Professional Judgement in auditing SAP fixed assets

 

Before you proceed reading on the details of the indicators, I would recommend you read the concept of indicators first.

 

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Three TOP indicators for the procurement of assets and implausible transactions of fixed assets

As already mentioned, every indicator is associated with a process, a process area, an audit objective and a risk respectively. In the following, three selected indicators from the area of fixed asset procurement and implausible processes in fixed assets are presented. 

Altogether I have designed and implemented 22 indicators for the fixed asset process. You can download the details about all fixed asset indicators here:

 

Download pdf 

Fixed asset acquisition without an invoice

This indicator aims at identifying compliance and correctness.

There is the risk that fixed asset acquisitions are not based on an invoice.

The criteria for this indicator is:

The document has been marked because it contains an asset acquisition (BSEG-ANBWA=100) but an incoming invoice is missing (credit position related to a vendor BSEG-KOART='K'). Assets under construction are not included in the analysis.

 

Rare fixed asset transactions

This indicator aims at identifying compliance and correctness.

There is the risk of inappropriate account assignments.

The criteria for this indicator is:

The document has been marked because it's posting a fixed asset transaction item on debit / credit side in less than 3% of all cases of that fixed asset transaction type. Fixed asset transaction types are e.g. "asset acquisition" or "asset sale".

 

Temporary deactivation of fixed assets

This indicator aims at identifying compliance and correctness.

There is the risk that deactivation could be used to circumvent depreciation.

The criteria for this indicator is:

The document has been marked because it's referencing an active fixed asset that has been historically deactivated at least once (Table ANLZ-XSTIL).

 

Topics: SAP, Audit, fixed asset

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