Stock Audits Or Inventory Audits
Physical verification can be termed as a process of comparing an organization's official list of assets with the actual assets. Most of assets that auditors verify are fixed assets, cash and inventories. With this examination, auditors personally authenticates that the assets listed on an entity's financial statements actually exist.
Service Details
Stock audit or inventory audit is a term that refers to physical verification of a company or institution’s inventory assets. There are types of stock audits depending on the purpose and every stock audit will require a different approach.
Every business institution at least needs to perform a stock audit once a year to update and ensure that the physical stock and the computed stock match. A stock audit helps correct discrepancies between the physical stock and book stock can be corrected.
- L-ONE provides both human and technological inputs for inventory verification of material received, material in process, semi-finished goods, finished goods, warehouse inventory and goods in transit at multiple locations like manufacturing plants, warehouses, trading sites, project sites etc.
- We are scrupulous and committed to delivering results setting you free to focus on more crucial aspects of your operations.
There are several key reasons why an institution needs to perform a stock audit, including:
- Identify the slow-moving stock, deadstock, obsolete stock, and scrap
- Find out discrepancies between book stocks and physical stock
- Update the physical stock that matches book stock
- Make sure the proper preservation and handling of stocks
These are the key benefits of stock audits:
- To reduce cost and bottom-line
- To prevent pilferage and fraud
- As information of the accurate inventory value
- to reduce gaps in the inventory management process
- As special arrangements for third party opinion, including for agent warehouses
- As a good control mechanism in running the business
Key benefits of Stock Audits:
- Identification of slow moving stock, obsolete stock, dead stock and scrap
- Avoidance of pilferage and fraud
- Instant information of value of inventory
- Cost reduction and bottom-line
- Special arrangements for third party opinion, including for Agent warehouses
- Reduction in gaps in present inventory management process
Solutions for Offerings the Stock audits Provides:
- Advising on best possible way for arranging inventory
- Recognition of inventory and WIP
- Identification of WIP, including stage of completion.
- Disposal/handling of obsolete stock : identification and segregation