Stock Audit
Introduction
Welcome to Numbersmiths Consulting’s Stock Services page. We offer comprehensive stock services to help businesses effectively manage their inventory and ensure accurate stock records. Our package includes the following services:
Our Stock Audit include:
1. Physical Count of Stock: We conduct thorough physical stock counts to verify the actual quantity of inventory on hand. This ensures that the recorded stock matches the physical stock, identifying any discrepancies or inaccuracies.
2. Audit of Stocks Lying at Outside Locations: We extend our stock audit services to include inventory stored at outside locations, such as warehouses or distribution centers. Our auditors will visit these locations to assess the stock and reconcile it with the recorded data.
3. Documentation of Stock (through photographs): As part of our stock services, we document the stock through photographs. This provides visual evidence of the inventory and assists in maintaining accurate stock records.
4. Checking of Sealed Inventories: We carefully inspect sealed inventories to ensure they remain intact and secure. This includes verifying seals, labels, and any tamper-evident features, ensuring the integrity of the inventory.
5. Recognition of Inventory and WIP: Our auditors assess the types of inventory and work-in-progress (WIP) in your organization. We identify and categorize the different inventory items and evaluate the accuracy of their valuation.
6. Comparison of Physical and Recorded Stock: We reconcile the physical stock counts with the recorded stock in your books. This allows us to identify any discrepancies and investigate the reasons behind them, providing insights for better inventory management.
7. Use of Advanced Technology for Stock Management: At Numbersmiths Consulting, we leverage advanced technology tools and software for efficient stock management. We can assist you in implementing inventory management systems, barcode scanning, or other technology solutions to enhance your stock management processes.
Our Approach:
- We take a meticulous approach to auditing, focusing on identifying revenue leakages, overpricing, process overlaps, unauthorized access, and omission and commission errors.
- Our audit procedures are tailored to the specific needs of your business, allowing us to provide meaningful insights and recommendations to improve financial performance and operational efficiency.
What is the Procedure to Conduct Stock Audit?
The procedure to conduct a stock audit involves several key steps to ensure accurate and reliable results. Here is an overview of the typical:
Cutoff Analysis
The auditor reviews the cutoff date to determine which inventory transactions should be included in the audit. This helps ensure that the inventory count accurately reflects the stock on hand at the specified date.
Observe the Physical Inventory Count
The auditor physically observes and participates in the inventory count process. They verify the accuracy of the count and document any discrepancies or issues encountered during the count.
Reconcile the Inventory Count to the General Ledger
The auditor compares the physical inventory count with the inventory records in the general ledger. Any differences are investigated and reconciled to ensure the accuracy of the recorded inventory.
Test High-Value Items
High-value items are subjected to detailed testing to validate their existence, condition, and valuation. This includes verifying serial numbers, assessing the condition of assets, and reviewing supporting documentation.
Test Error-Prone Items
Items that are prone to errors, such as items with high turnover or frequent movement, are tested more rigorously. This helps identify potential discrepancies and ensures accurate reporting of these items.
Test Inventory in Transit
Inventory that is in transit, such as goods in transit from suppliers or to customers, is verified and documented to ensure proper valuation and inclusion in the inventory count.
Test Item Costs
The auditor examines the accuracy of item costs recorded in the inventory system. This involves reviewing pricing information, invoices, and other relevant documents to ensure the correct valuation of inventory items.
Review Freight Costs
The auditor reviews freight costs associated with inbound and outbound inventory movements. This helps confirm the accuracy of freight charges and assess their impact on inventory costs.
