Stock audit, in general usage is considered as an important auditing term which refers to the physical verification of the inventory. However at times, it may also involve the valuation of the inventory but it would depend on the terms of reference or the engagement letter of the assignment. When heading forward, it is important to remember and keep in consideration the purpose for which the audit is being conducted because different audits may have different approach which would ultimately depend on the aim.
In other words, stock audit is a statutory process which every business institution needs to perform at least once in a financial year. As far the stock audit process is concerned, the process mainly involves the counting of physical stock presenting the specified premises and verifying the same with computed stock maintained by the company. The reason and purpose behind executing this is to correct the discrepancies present in the book stock when compared to physical stock by passing necessary adjustment entries.
Here are the reasons why one should look forward for the stock audit :
- To update the opening stock details in shoper.
- To identify the discrepancy between book stocks also known as computed stock and physical stock.
- To update the actual physical stock as book stock.
- To ensure proper preservation and handling of stocks.
We offer reliable stock audit services to companies and organizations with a dedication and aim to help them safeguard and monitor their physical assets and inventories.
Here are a few listed key benefits of stock audit :
- Direct impact on costs and bottom line
- Prevent pilferage and fraud
- Identifies slow moving stock, obsolete stock, dead stock and scrap
- Third party independent opinion, especially for agent warehouses
- Identifies gap in current inventory management process
- Enable accurate valuation of inventory
We have highly experienced and well trained stock audit specialist that can not only offer you quality results and output but at the same time, help you suggesting for the controlling of cost of the stocks.
We also carried out Stock audit and Physical Asset Verification on behalf of Banks and Financial institutions. The objective is to ensure that the security against which funds are lent by the bank is safe and valued correctly.