The Proposed Internal Control Structure of the Fixed Assets

Fixed asset are the main income producers in the production companies. These types of assets have a lot of varieties and are different from one company to another. They require a special control structure because of its special characteristics such as: having lower flow, high liquidity, and so on. This structure emphasizes the physical protection and proper reporting as well as the efficiency of the assets. In this essay, we have explained the essence of the different types of the fixed assets as well as proposing a special control structure which is resulted from the precise review of the professional literatures. This structure consists of three parts (physical controls, reporting, and maximizing the asset output), and varies according to the company size (small, medium, or big), asset type (land, building …), and activity type (production, commercial, trading), and the way to acquire the asset (money, credit …).In this proposed structure, we have paid much attention to the role of the information technology in every type of the controls, and we have separately studied the control structure of the fixed assets in the non-exploitative units. As most of the state units still use the modified cash systems, and they register their assets as the costs, it seems necessary to apply special controls to reduce the risks related to these assets in order to protect the public interests

Keywords:

control , control structure , asset control , equipment