Faculty of business department of accounting an assessment of fixed asset managementin the

Table 8The fixed asset management after acquisition
No
Item
Alternatives Amount (%)
1
Do you think the fixed asset receiving, issuing,
Yes
10
72.4
accounting and storing responsibilities properly 
segregated?
No
4
28.6
Total
14
100
2
Are materials released from storerooms only on the basis Yes
2
13
of requisitions which are approved by a responsible 
official of the department?
No
12
87
Total
14
100
3
Are the materials issuances reconciled to general ledger
Yes
5
36
control accounts at reasonable intervals?
No
9
64
Total
14
100
4
Are inventory records reconciled with physical count at a 
regular interval?
Yes
5
36
No
9
64
Total
14
100
5
Are all classes of fixed asset items physically counted?
Yes
4
28.6
No
10
72.4
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Total
14
100
6
Does your firm have a manual which can provide a
Yes
2
13
proper procedure for making fixed asset physical count?
No
12
87
Total
14
100
7
Does management review the reconciliation of physical
Yes
6
43
fixed asset counts to the fixed asset records?
No
8
57
Total
14
100
Item 1 of the table 8, 72.4 % of the respondent’s shows that thematerial released from store 
rooms not always only on the basis of requisitions which are approved by a responsible official 
of the department. Based on the data the company store management personnel’s didn’t properly 
follow the required procedure when the raw materials released from the store. This implies that 
the company has had a problem on the controlling of releasedraw materials.
On item 2of the same table, majority 87 % of the respondents show that the company materials 
issuances didn’t reconciled to general ledger control accounts at reasonable intervals and the rest 
13% of them agreed on it. This implies that there is the information materials issuances didn’t 
reconciled to general ledger control accounts.
On item 3of the same table, majority 64% of the respondents show that the company inventory 
records reconciled with physical count at a regular interval and the rest 36 % of them agreed on 
it. This implies that the company didn’t perform the inventory records reconciled with physical 
count at a regular interval. Similarly on the item 4 of the same table majority 64% of the 
respondents respond that all classes of inventory items didn’t physically counted. This implies 
that the physical count of the company didn’t concern all the inventory items.
As can be seen on item 5 of table 8, majority of the respondents 72.4 % implies that the company 
didn’t have a manual which can provide a proper procedure for making inventory physical count. 
This implies that the inventory physical count of the company didn’t have proper procedure, the 
efficiency is depends on the assigned person experience. Similarly on the item 6 of the same
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table majority 87 % of the respondents respond that management didn’t review the reconciliation 
of physical inventory counts to the inventory records. This implies that the inventory controlling 
performance exposed the inventories for the theft.
As item 7 of table 8 shows that majority of the respondents which is 57 % of them implies that 
there are discrepancies between physical counts and perpetual records investigated and resolved. 
This implies that the problem on the inventory count didn’t identify the problem solving and 
didn’t investigate the problem on it.