Introduction
Having an asset register does not mean knowing your assets.
Over time:
- Assets are relocated
- Equipment breaks
- Employees leave
- Devices are replaced
- Ghost assets remain listed
- New purchases go unrecorded
A global survey found that over 25% of fixed asset records in large organizations contain inaccuracies (Gartner, Asset Data Quality Report, 2023).
PwC reports that 10–30% of assets listed on registers do not physically exist (PwC Fixed Asset Controls Review, 2022).
Eventually, systems tell a story that no longer matches reality.
What Is Physical Asset Verification?
Physical asset verification is a systematic on-site audit that confirms:
- Asset existence
- Correct location
- Operational status
- Tag accuracy
- Ownership and usage
- Actual condition
Organizations conducting annual verification reduce audit discrepancies by up to 65% (Deloitte Risk Advisory, 2024).
What Is Data Cleansing?
Data cleansing corrects inaccuracies so registers reflect reality by:
- Removing duplicates
- Eliminating ghost assets
- Correcting locations and departments
- Updating depreciation data
- Standardizing naming conventions
- Adding missing assets
Improving asset data quality increases operational efficiency by 20–30% (EY Global Asset Management Study, 2023).
Why Verification & Cleansing Matter
- Financial Accuracy
Inaccurate asset data affects:
- Depreciation
- Capital budgets
- Insurance coverage
- Financial reporting
Poor asset visibility contributes to $3–4 trillion in global annual losses (ACFE Occupational Fraud Report, 2022).
- Audit & Compliance Preparedness
Validated asset registers reduce audit time by up to 50% and minimize adjustment entries (KPMG Audit Readiness Report, 2023).
- Operational Efficiency
Up to 40% of equipment downtime is caused by poor asset data, not hardware failure (McKinsey Operations Report, 2024).
- Loss Prevention
Internal mismanagement accounts for 56% of operational asset loss cases (IBM Security Asset Risk Report, 2023).
- Strategic Planning
High-quality asset data leads to 28% better procurement decisions (Accenture Digital Operations Survey, 2023).
Common Problems Found During Verification
- Ghost assets
- Unrecorded equipment
- Duplicate entries
- Incorrect conditions
- Assets listed as active after disposal
Studies show 15–20% of spreadsheet-based registers are wrongly categorized (Panorama Consulting Group, 2022).
The Verification Process
- Site survey & scoping
- Physical inspection
- Cross-checking with records
- Tag scans, serials, photos
- Condition & risk classification
- Discrepancy reporting
- Data cleansing
- Final validated register
Organizations following this process report 30–60% improvement in data accuracy (Deloitte Insights, 2024).
Long-Term Impact
After verification and cleansing:
- Audits become smoother
- Budgets become accurate
- Maintenance becomes predictable
- Asset losses decline
Companies with accurate registers reduce operational waste by up to 22% (PwC Asset Optimization Study, 2023).
Conclusion
Physical asset verification and data cleansing reconnect digital records with physical reality.
They replace assumptions with facts and provide a reliable foundation for financial integrity, operational efficiency, and long-term planning.