Stock audit refers to the physical verification of the inventory. It may involve the valuation of the stock, but it would depend on the terms of the reference or the engagement letter of the assignment. When heading forward, it is essential to keep in consideration, the sole purpose for which the audit is being conducted because different audit may have a different approach which would ultimately depend on the aim.

In other words, a stock audit is a statutory process which every company/business needs to perform atleast once in a financial year. As far as the stock audit procedure is concerned, the stock audit process in India involves the counting of physical stock and presenting the premises and verifying the same with computed inventory maintained by the company. The reason and purpose behind executing this are to correct the discrepancies present in the book stock when compared to physical stock bypassing necessary adjustment entries. Manish Anil Gupta & Co. is among the best stock auditors in India providing independen audit services.

Reasons to Perform Stock Audit

Let us understand few reasons to perform stock audit in India:-

• To update the opening stock details in Shopper.
• To identify the discrepancy between the book stocks, also called computed stock and physical stock.
• To update the actual physical stock as book stock.
• To ensure the adequate preservation and handling of stocks.

 Benefits of Stock Audit

• Direct impact on costs and bottom line
• Prevent pilferage and fraud
• Identifies slow-moving stock, obsolete stock, deadstock and scrap
• Third-party independent opinion, especially for agent warehouses
• Identifies the gap in the current inventory management process
• Enable accurate valuation of inventory
• Identification of slow-moving stock, obsolete stock, deadstock and scrap
• Avoidance of pilferage and fraud
• Instant information about the value of inventory
• Cost reduction and bottom-line
•  Reduction in gaps in the present inventory management process