Stock Auditing

Stock Auditing in its general usage in the auditing scenario refers to the physical verification of the inventory. However, at times Stock audit may also include valuation of the inventory. This would depend on the terms of reference or the engagement letter of the assignment. These goods are normally stored in the godowns, which are generally located near the factory. Audit is an independent check on the functions of the management, which has some value in the eyes of law and the taxation authority.

We provide accurate and trustworthy Stock Auditing services to the clients. Audit refers to thorough check of the entire system so that it facilitates prevention and early detection of frauds. Stock Audit is one of the most important aspects of the overall exercise of audit of any organization. In stock audit, auditor ensures himself about the quantity, quality, composition and actual value of the stock & the debtors.

Our Stock Auditing procedure covers examination of aspects such as reasonableness of the valuation of the security, routing of sale proceeds of hypothecated stocks largely through the borrowers account, maintenance of the prescribed margins, accuracy of the stock statements, reasonableness of the composition and age of hypothecated stock and the insurance, quality and age of the receivables, etc. It is meant for the companies who are engaging in the process of manufacturing or the entities which indulge in the departmental-retailer business.

The Stock Audit Means Assets Which Are Held For :

  • Sale in the ordinary course of business
  • In the process of production for such sale; or
  • In the form of material or supplies to be consumed in the production of goods or
  • Services for sale (As per Accounting Standard 2)

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