The auditor should follow various audit approaches stated as under:
The auditor should review the internal control to confirm the accountability of each asset has been established maintaining appropriate records and has been accounted and depreciated properly.
Where documents of title relating to assets held abroad are not available for inspection, a certificate should be obtained from the agent or any other party holding the document. Such a certificate must disclose unequivocally that they are free from any charge or encumbrance.
The auditor should obtain sufficient evidence to satisfy that the assets are physically verified and exists at the specified location.
The auditor should obtain third party confirmation for any assets that are in possession of other parties like bank balance, debtors etc.