The fixed-asset roll-forward reconciles beginning cost plus additions and transfers less disposals to ending cost, and beginning accumulated depreciation plus expense less disposals to ending accumulated depreciation. Auditors test each line against an assertion: existence, completeness, rights, valuation, presentation.
The roll-forward is six lines that have to tie.
For cost: beginning balance, plus additions, plus transfers in, less disposals, equals ending balance. For accumulated depreciation: beginning balance, plus the period's depreciation expense, less the accumulated depreciation on disposals, equals ending balance. Net book value is the difference. The auditor starts here because every line is a claim that can be traced somewhere: the beginning balance to last year's file, additions to invoices, disposals to sale documents, expense to the recalculation, ending balances to the ledger and to the assets on the floor.
| Line | Cost | Accumulated depreciation | Net book value |
|---|---|---|---|
| Beginning balance, 1 Jan 2026 | 5,993,830.00 | (2,884,102.55) | 3,109,727.45 |
| Additions | 386,700.00 | 386,700.00 | |
| Transfers in from CIP | 142,000.00 | 142,000.00 | |
| Disposals | (91,250.00) | 88,430.10 | (2,819.90) |
| Depreciation expense, periods 1 to 9 | (647,137.17) | (647,137.17) | |
| Balance, 30 Sep 2026 | 6,431,280.00 | (3,442,809.62) | 2,988,470.38 |
| Roll-forward line | Assertion the auditor tests | What they ask for | What the register produces |
|---|---|---|---|
| Beginning balance | Accuracy | Last year's audited ending balance | The prior period's roll-forward, reproduced |
| Additions | Existence, valuation, cutoff | A sample of invoices, contracts and in-service evidence; capitalisation policy | Additions report with vendor, invoice, date and class |
| Transfers | Classification | Support for transfers between accounts, entities or CIP | Transfer report with from, to and date |
| Disposals | Completeness, accuracy | Sale documents, proceeds, gain or loss recalculated | Disposal report with proceeds, basis and gain or loss by book |
| Depreciation expense | Accuracy, valuation | Recalculation on a sample; lives and methods reviewed; impairment indicators | Depreciation expense by period; audit trail of overrides |
| Ending balance | Existence, completeness | Physical inspection of a sample; ledger agreement | Net book value by account; physical inventory exceptions |
The assertions behind the tests.
Auditing standards organise the work around assertions about the balance: existence (the assets are there), completeness (everything that should be capitalised is, and nothing that was expensed should have been), rights (the entity owns them), valuation and accuracy (cost, lives, methods, impairment), and presentation. For fixed assets the procedures are predictable: vouch a sample of additions to source documents and inspect them; trace repairs and maintenance expense for items that should have been capitalised; recalculate depreciation for a sample and review changes in lives and methods; inspect a sample of recorded assets and look for indicators of impairment; agree the roll-forward to the ledger and the financial statement note.
| When | User | Record | Field | Before | After | Reason |
|---|---|---|---|---|---|---|
| 30 Sep 2026 16:41 | M. Reyes | Period | Period 9 | Open | Depreciation posted | Mass recalculation, 1,203 assets |
| 12 Sep 2026 14:02 | M. Reyes | 10577 | Status | In service | Disposed, sale | Replaced by unit 9 |
| 12 Sep 2026 13:55 | M. Reyes | CIP-0155 | Status | In progress | Capitalised as 10744 | Dock doors in service |
| 10 Sep 2026 09:18 | J. Okafor | 10412 | Federal convention | Half-year | Half-year (re-tested) | 40% rule check, Q3 |
| 03 Sep 2026 11:30 | Import | 27 assets | Created | From AP export 88213 to 88266 | Additions queue approved by J. Okafor | |
| 29 Aug 2026 15:07 | K. Lindqvist | 10240 | Cost | 9,600.00 | 9,840.00 | Freight added, invoice 88266 |
How to be ready before the request list arrives.
- Reconcile the register to the ledger monthly on three balances: cost, accumulated depreciation, net book value. A roll-forward that ties in September does not need to be rebuilt in January.
- Keep the capitalisation policy with the file, and apply it: the threshold, the treatment of repairs, the treatment of software and improvements.
- Record disposals when they happen, with proceeds and the gain or loss, not at year-end from memory.
- Count. A physical inventory of movable assets, with the exceptions resolved and the write-offs approved, answers existence before the auditor asks.
- Log overrides with a reason. A changed life or an adjusted prior depreciation is a question the auditor will ask; the audit trail is the answer.
The month-end reconciliation article covers the monthly tie-out; the ghost assets article covers the count; the reports page lists the roll-forward and the audit trail among the standard reports.
What to record on the asset.
- Vendor, invoice number, invoice date and in-service date on every addition.
- The disposal date, proceeds, expenses of sale and method of disposal.
- The reason for every override of a calculated figure, with the user and the date.
- Location and custodian, so a sample can be found.
- The class and the capitalisation decision, with the policy threshold in force.
In Fixed Asset Desk: the roll-forward by account or class, the additions, transfers and disposal reports and the audit trail are standard reports, and the sample roll-forward on this site is produced from the same data.
Sources: AICPA Statements on Auditing Standards, AU-C section 315 (assertions) and AU-C section 500 (audit evidence); FASB ASC 360-10 (property, plant and equipment). Checked 20 September 2026.