Balance sheet audits

Tests the strength of the internal control system by working backwards to get the initial transactions. It is based on verification of assets by checking;

  • Description: Mainly of recording entries.
  • Ownership: Prove of ownership either by use of logbooks for cars or title deeds for land.
  • Value: Cost and method of depreciation.
  • Existence: Is the asset really there?


1. It is cheap compared to other audits.

2. A balanced opinion can be reached.


1. It is a partial audit.

2. Applied only to business with strong internal control system.