Compliance & Audit Reality

Why Auditors Care About Fixed Assets

Auditors verify:

• Existence
• Ownership
• Valuation
• Completeness
• Control effectiveness

If assets cannot be physically verified:

• Audit qualifications
• Management letters
• Reputational damage

Key Standards to Be Aware Of

Sales does NOT explain details, only awareness:

• IAS 16 / IFRS
• USALI (Hotels)
• Ministry of Finance (Saudi Arabia)
• Internal control frameworks

TFAM’s Role in Compliance

TFAM provides:

• Physical verification evidence
• Time-stamped inventory records
• Movement history
• Ownership traceability
• Audit-ready reports

Important:

TFAM supports compliance—it does not replace accounting systems.