Stock audit is the physical verification of the inventory. However at times it may also include valuation of the inventory, this would depend upon the terms of reference or the engagement letter of the assignment. Important thing to remember in a stock audit is the purpose for which the audit is being conducted. Different audits may have different approach to them, which would depend on the intention; for instance, somewhere it may be to ensure there is no pilferage (generally for smaller items) or to ensure that they are properly stored, for larger or damageable goods.
OBJECT OF STOCK AUDIT
Stock Audit is conducted to ensure:
- Proper Preservation/Storage of Stock.
- Whether obsolete and Non Moving stock has been separately identified?
- Whether stock is adequately insured against all perils?
- Whether the Physical Stock Value confirms with the Value shown in Bank Stock Statement?
- Whether the stock is owned by the borrower & finance is made available against the paid value of stocks only.
- Whether the Age-wise & Party-wise Book debts analysis submitted to the bankers tallies with the books.
WHY GAB & ASSOCIATES?
Stock Audit is an area of specialization and core competence for GAB & Associates. Assets e.g. Stocks and physical assets such as raw materials are important real assets and need repeat watch. As a large number of companies are operating across the borders through multiple locations, some even with various channel partners, ensuring this watch is challenge. We offer our focused services to companies to keep them assured of their physical assets.
Our special Stock Audit team follows a strict audit and reporting mechanism that strives for best and makes sure that each minute aspect of stocks is evaluated and findings are reported in a transparent manner to levels concerned. Stock audits are also undertaken for banks and other financial institutions which have extended credit to businesses against physical goods and assets. We have big enough network throughout India for quick and simultaneous audits at multiple locations.
We take full care to provide you with comprehensive and most accurate figures of inventories. During this audit, all the records of purchase, sale and movements of stock is taken carefully.
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