Stock audit
A stock audit is an independent audit conducted to verify the physical existence, quantity, quality, and valuation of a company's stock or inventory. The main objective of a stock audit is to ensure that the stock shown in the company's accounting records matches the stock physically present in the company's warehouses or other locations.
The stock audit process typically involves the following steps:
Planning and preparation:
this involve determining the scope of the audit, identifying the locations where stock will be audited, and preparing the audit schedule.
Physical verification:
this involves physically counting and verifying the stock present in the company's warehouses or other locations. This may involve the use of barcode scanners or other automated systems to assist in the counting process.
Valuation and reconciliation:
this involve determining the value of the stock and reconciling the physical count with the stock shown in the company's accounting records. This may involve verifying purchase invoices, sales records, and other documentation.
Reporting and recommendations:
this involve preparing a report of the findings of the audit, including any discrepancies or issues identified, and making recommendations for improvement.
Stock audits are important for companies to ensure the accuracy and reliability of their inventory records and to identify any potential issues or discrepancies. They are conducted by our auditors/ consultants who have specialized knowledge and expertise in inventory management and accounting.