I am currently working on a risk assessment for the Accounting Department. What would you consider to be the most significant exposures and vulnerabilities relating to fixed assets?

Stealing them? Just kidding. There are a couple of issues that come to mind. First, someone has to know enough about tax laws to know to assign each fixed asset the appropriate depreciation period. Next is what type of system are you using to track fixed assets? Have assets been purged, are they readily identifiable? Do you have assets that have not been disposed of that may still be shown as "Active", with a balance? Is your software being updated annually to ensure that any updated laws or applications are being applied?

Someone should always be reviewing the input of the Fixed Asset System. A periodic review should be conducted of the depreciaton schedules to ensure they are appropriate to their classification.

Stealing fixed assets may be , but a fraud risk would be the creation of phony fixed assets with the offsetting credit going to the thief's benefit.

Another fraud risk would be actual assets paid by the bank but used personally by the fraudster, for example a PC at home, or an appliance, etc.

Another fraud risk would be the purchase of fixed assets for higher than market rates from a favored vendor or seller.

We just went through risk assessment over FA. These are the risks we identified:
1. Acquisition of unnecessary property that results in unused facilities or equipment
2. Purchase of property without required regulatory agency approval
3. Property purchases recorded in expense accounts
4. Property purchases unrecorded
5. Property purchases recorded in wrong property accts
6. Property remains on books after disposal
7. Undetected deterioration of property
8. Wrong lives assigned
9. Miscalculation of depreciation
10. Bank premises destroyed
11. Equipment destroyed or lost

Transaction risk - that assets are not properly recorded, properly depreciated.

Reputation risk - security of assets

Also, you need to determine that all assets are properly insured for loss. And the issue of investment in non-earning assets and regulatory restrictions thereon.

These all look very good. I have one I don't think has been mentioned - inadequate maintenance. For example the bank vehicle not having the oil changed for 30000 miles or so.