It has become apparent that the historic asset costs stated in the financial statements are incorrect. The former accountant for my client never assessed the entries in the accounting system, instead, she relied on the TB figures from Sage to draw up the accounts. Therefore, numerous items of overhead expenditure were incorrectly coded to the asset nominals.
I instructed the client to make a list of the company assets for me to create an asset register, as a result it has highlighted the fact that the assets are considerably overstated in the accounts. I would like to ensure that, going forward, the accounts are a true reflection of the company's position and therefore want to report the true cost of assets currently held in the business.
I was looking for advice on the best process in achieving this please? I do not have any historic fixed asset register, nor details of assets since 16/17 due to the system being wiped of history.
Thanks in advance