Physical Verification
Directly inspecting an asset (inventory, fixed assets, cash) rather than relying solely on the book record, to confirm it exists and is in the condition and location the records claim.
Related terms
- Perpetual Inventory System
An inventory record that updates continuously as transactions occur, as distinct from a periodic system that only determines quantities at a physical count.
- Petty Cash
A small cash fund held for minor day-to-day expenses, reconciled and replenished periodically — a disproportionately common source of control weakness given the small amounts involved.
- Place of Supply
The location that determines whether a supply is intra-state or inter-state under GST, and therefore which tax (CGST/SGST or IGST) applies.
- Professional Judgment
The application of relevant training, knowledge and experience to make informed decisions about the courses of action appropriate given the circumstances of the engagement.
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