Stock Audit

A stock audit refers to the verification process of inventory and stocks lying with a business on a certain date to determine existence, condition, valuation, ownership and title. It reconciles physical stock counts with stock records.

Stock audits ensure stocks are safeguarded, recorded and valued accurately in financial statements. They detect issues like pilferages, expired items, insurance risks early.

TYPES OF STOCK AUDITS

Corporate tax is levied on both domestic as well as foreign companies which are not registered in India but have their operations and generate income in India. There are many Tax Incentives like setting up businesses in Tax-Free Zones, Export Oriented Units, and in SEZs (Special Economic Zones) are growing with several interpretations and documentation

Either internal audit team or external consultants conduct these periodically or surprise checks to assess inventory management efficiency, storage risks etc.

Stock audits involve

Planning

Understanding locations, types of inventory, processes and risks. Identifying stocks requiring 100% or random sample checking.

Planning

Understanding locations, types of inventory, processes and risks. Identifying stocks requiring 100% or random sample checking.

Preparation

Issuing advance notice, stock freeze requests, tagging stocks, coordinating audit needs etc.

Preparation

Issuing advance notice, stock freeze requests, tagging stocks, coordinating audit needs etc.

Verification

Physically inspecting, counting, measuring, quality checking stocks as per audit plan through appropriate techniques. Conducting year-end inventory observation.

Verification

Physically inspecting, counting, measuring, quality checking stocks as per audit plan through appropriate techniques. Conducting year-end inventory observation.

Reporting

Capturing test count results and discrepancies from stock records. Seeking reconciliation and getting management explanations.

Reporting

Capturing test count results and discrepancies from stock records. Seeking reconciliation and getting management explanations

Follow up

Getting stock adjustments, write offs etc. done based on report. Destroying unserviceable stocks. Taking action on frauds, gaps.

Follow Up

Getting stock adjustments, write offs etc. done based on report. Destroying unserviceable stocks. Taking action on frauds, gaps.

 

FAQ

1. Stock Audit services near me

Yes, we provide a good quality stock audit services of your choice. Contact us for more details.

  • Shops and supermarkets
  • Warehouses and storage centres
  • Manufacturing companies
  • Businesses applying for loans or selling products regularly

It depends on your business needs. Some companies do it quarterly, others annually. High-volume or high-value businesses may even opt for monthly cycle counts to maintain tighter control.

The duration depends on the size of your inventory, number of locations, and complexity. Small warehouses may take a day or two, while larger setups might require a week or more.

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