Skip to main content
ComplianceIntermediate9 min read

How to Conduct an Asset Audit

Jarrod Milford

Jarrod Milford

Commercial Director

|Reviewed by Lachlan McRitchie
Published 28 June 2026

Step-by-step asset audit guide. Covers scope, scan-based counts, reconciling to the register, ghost and zombie assets, and ISO 55001 records.

Time required

1-3 days (depending on scope)

Difficulty

Intermediate

Tools needed

Current asset register, Asset audit checklist, Mobile device or scanner, Camera

Digitise your inspections and maintenance

Replace paper checklists with digital forms your team can complete on any device, online or offline. MapTrack captures photos, timestamps and GPS location automatically.

  • No credit card required
  • 30 days free trial
  • Cancel anytime

An asset register only earns its keep if it matches reality. Over a year assets get moved, modified, lost, stolen and disposed of, and unless you check, the register quietly drifts out of date. An asset audit is the periodic verification that closes that gap, confirming every recorded asset still exists, sits where it should and is in the condition you think it is.

This guide is for asset managers, finance teams, compliance officers and operations leads who already have a register and need to verify it. It covers scoping the audit, running a fast scan-based count, finding ghost and zombie assets, reconciling the differences, and how audits differ from a stocktake. If you are building the register from scratch first, start with our guide to building an asset register.

Before you start

Export your current asset register as the baseline and have your asset audit checklist ready. Agree the scope, the cut-off date and who signs off the result. You will need a mobile device or scanner, a camera and access to each site, store and vehicle in scope. Brief the team before you start so everyone records exceptions the same way.

Step-by-step audit

1. Define the scope and pull the current register

Decide what the audit covers: which sites, which asset classes and whether sub-threshold items such as tools are in scope. Export the current asset register as your baseline. Agree the cut-off date so movements after that point do not muddy the count. Confirm who owns the result and what a pass looks like.

2. Plan the count and brief the team

Break the audit into zones (yards, stores, vehicles, sites) and assign auditors to each. Decide on a full count or sample-based cycle count for low-value items. Brief the team on what to scan, what to photograph and how to flag exceptions. A wall-to-wall count is most accurate but cycle counts spread the effort across the year.

3. Physically verify and scan each asset

Walk each zone and verify every asset exists, is where the register says it is, and is in the recorded condition. Scan the QR code or barcode to open the record, or capture the serial number where no tag exists. Photograph high-value items and anything damaged. Apply a new label to any asset found untagged.

4. Record condition, location and custody

For each asset confirm and update its condition rating, current location, assigned user or custodian and any safety or compliance status such as inspection due dates. Note assets that have moved, been modified or are awaiting disposal. Accurate custody data is what makes the register trustworthy after the audit.

5. Identify ghost and zombie assets

Compare the physical count to the register. Ghost assets are items on the register that no longer physically exist (lost, stolen or disposed of without a record). Zombie assets are physical items in use that are missing from the register. List every exception in both directions with evidence.

6. Reconcile, adjust and report

Investigate each discrepancy, then update the register: add found assets, retire missing ones with a disposal reason, and correct locations and values. Produce an audit report showing the count, the discrepancy rate, write-offs and corrective actions. Store the report and evidence so the next audit and any external auditor can trace what changed.

Reconciling discrepancies

DiscrepancyWhat it meansAction
On register, not found (ghost asset)Lost, stolen or disposed of without a recordInvestigate, then write off with a documented reason
Found, not on register (zombie asset)Real asset never captured or added off-processAdd to register with full data and a new tag
Wrong locationAsset moved without updating custodyUpdate location and assigned user; check transfer process
Condition worse than recordedWear, damage or pending failure not loggedUpdate condition; raise maintenance or disposal
Compliance status overdueInspection, calibration or service has lapsedQuarantine if unsafe; schedule the overdue task

Asset audit vs stocktake

AspectAsset auditStocktake
What is countedCapital and long-life assets, individuallyConsumable stock and inventory, by quantity
Also verifiesCondition, custody, location, compliance, book valueQuantity on hand and reorder points
Reconciled againstThe fixed-asset registerInventory or stock records
Typical frequencyAnnual full count, cycle counts in betweenOften more frequent, tied to stock turnover

How often to audit

Best practice is a full physical audit at least annually, with cycle counts or spot checks through the year for high-value or high-risk assets such as vehicles and heavy plant. Many organisations verify critical assets quarterly and everything else once a year.

ISO 55001, the international standard for asset management, expects the register to be kept accurate and current with a documented verification schedule rather than a single annual scramble. For organisations reporting under AASB 116, an accurate register also underpins depreciation and the carrying value of property, plant and equipment, so the audit has a financial dimension as well as an operational one.

Going digital with MapTrack

A paper audit on a spreadsheet register is slow and error-prone: you type serial numbers, lose the exception notes and reconcile by hand weeks later. With MapTrack, every asset carries a QR code that auditors scan to open the live record on the spot, confirm or correct the details, and attach a photo, all from a phone.

The audit module tracks what has been verified and what is outstanding in real time, so a multi-site count stays organised and you can prove full coverage. Discrepancies are logged against the asset and flow straight into the asset register, turning the audit from an annual event into continuous accuracy. See how teams run it with asset audit software.

About the author

Jarrod Milford

Jarrod Milford

Commercial Director

Jarrod has spent over a decade in technology consulting and asset management, including roles at Accenture (mining and heavy industry) and CGI as an Asset Management Consultant. He joined MapTrack in 2018 and has spent the past 8+ years building and scaling the platform, conducting 300+ user research sessions with field teams to shape the product. His consulting background gives him deep insight into the operational and compliance challenges facing asset-intensive Australian businesses.

View LinkedIn profile →
Lachlan McRitchie

Reviewed by Lachlan McRitchie

GM of Operations

Related templates

Download free templates to put this guide into practice.

FAQ

What is the difference between an asset audit and a stocktake?
An asset audit verifies that the items on your asset register physically exist, are in the recorded location and condition, and reconciles any differences. A stocktake usually refers to counting consumable inventory or stock on hand. The two overlap in the counting step, but an audit also checks custody, condition, compliance status and book value against the fixed-asset register, not just quantity.
How often should you audit your assets?
Best practice is a full physical audit at least annually, with cycle counts or spot checks through the year for high-value or high-risk assets such as vehicles and heavy plant. Many organisations audit critical assets quarterly and everything else once a year. ISO 55001 expects the register to be kept accurate and current with a documented verification schedule rather than a single annual scramble.
What is a ghost asset?
A ghost asset is an item still recorded on the asset register and often still being depreciated that no longer physically exists because it was lost, stolen, scrapped or disposed of without updating the records. Ghost assets overstate the balance sheet and inflate insurance and tax. Regular audits find them so they can be written off correctly. The opposite is a zombie asset, a real item in use that never made it onto the register.
How do you make an asset audit faster?
Tag every asset with a durable QR code or barcode so auditors scan instead of typing serial numbers, run the count on a mobile device that opens the live register on each scan, split the site into zones with assigned auditors, and use sample-based cycle counts for low-value items. A scan-based audit on an up-to-date register typically takes a fraction of the time of a paper count.

Ready to go digital?

Replace paper checklists and manual processes with MapTrack. Track assets, schedule maintenance and capture inspections from any device.