Stock audit is the process of   physical verification of the stock. It involve in valuation of the stock .

Usually  stock audit depends up  on the scope and terms of  of  engagement letter of the assignment.It is very importanyt to keep in consideration the sole purpose for which the audit is being conducted.

Different audits may  different approach which would ultimately depend up on the ultimate objective of the organisation.

Stock audit is  statutory process that every company or any business should get performed at least for  once in a  year.

stock audit process in India involves in physical counting of the  inventories and presenting the premises and verifying the same with computed inventory which is  maintained by the company.

Few Reasons to Perform Stock Audit in INDIA:

  • To maintain updated  stock  opening details in Shopper.
  • To identify  discrepancy between  computed stock and physical stock.
  • To get updated count of  actual physical stock as book stock.
  • To ensure adequate preservation and handling of the stocks.

Here is the list of benefits of Stock Audit

  • Ther will be Direct impact on costs
  • Auditing Prevents fraud
  • Identifing  slow-moving stock, obsolete stock, deadstock and scrap
  • Third-party independent opinion, especially for the agent warehouses
  • Identifies gap in the current inventory management process
  • Enabling  accurate valuation of inventory
  • Identification of the slow-moving stock, obsolete stock, deadstock and scrap
  • Avoidance of pilferage and fraud
  • Instant information about the value of stock
  • Cost reduction can be done.

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