Best Stock / Inventory Audit Companies in India

Devansh Sharma & Company (Chartered Accountant) - Top CA Firm in Ghaziabad, Noida and Greater Noida is an ISO certified inventory / stock audit companies based in India and successfully delivered Stock audit service assignements for manufacturing, pharmaceutical company, retail chains, banks like SBI, PNB. We has offered stock audit services in Pan India whether it is Delhi, Maharashtra, Pune, Mumbai, Chennai, Kolkata, etc. Devansh Sharma & Company (Chartered Accountant) - Top CA Firm in Ghaziabad, Noida and Greater Noida has expertise in different kinds of stock audit whether it is stock verification, stock reconciliation, set-up a new inventory management procedures or system, Fixed asset verficiation. Devansh Sharma & Company (Chartered Accountant) - Top CA Firm in Ghaziabad, Noida and Greater Noida has performed several stock audits of leading Indian brands like JSW group, Max Life, etc.

Stock Audit Services is a physical verification of stock and inventory and a very important tool for strengthening the internal control system. We have a dedicated stock audit team that ensures accurate counting of physical stock and its comparison with book stock. Even at third part locations like out bounded warehouses, consignment agents and distributors,

Devansh Sharma & Company (Chartered Accountant) can conduct physical verification of stock on the company's behalf. We are a leading Stock Audit Services & Stock audit processes firm in Noida, Delhi, Gurgaon, Other regions in India.

We ensure to take care of the following aspects while conducting the stock audit:

• Stock in transit

• Pilferage and old seasoned stock

• Storage Guidelines

• Stock movement procedures

We document the stock by taking photographs and randomly check the inward and outward stock movement process to mitigate the risk of the discrepancy. Also, we analyze the stock movement registers to eliminate any error or fraud on the part of stock keepers. 

Our coverage under Stock Audit Services in India:

• Understanding of Existing Software in place to get Recorded Inventory & Stock Information.

• Verification of Physical Inventory.

• Comparison with Physical & Recorded Inventory & variance analysis.

• Advising on the Best possible ways for Inventory Management.

• Issues resolution in current Stock Processes & Management

• Support in Documentation strategy including stock registers

• Rules & SOPs for Inventory, Storage, Stock loss & implementation of that into our system.

Devansh Sharma & Company (Chartered Accountant) is one of the leading Stock Audit Services in India which has handled more than 70 volume based stock audit assignments in NCR. We have a dedicated team that can perform Stock Audit where time is the main constraint as this Stock Audit process hampers the entire day to day operations.

We have the capacity to involve a good number of team members to perform the Stock Audit services in minimal time so that the Company can resume their day to day operations at full capacity at the earliest. We are capable of handling complex stock audit assignments even.

If you are looking for any Stock Audit Services & Stock advisory services in Delhi-NCR in India, you can write to us at  gstvsincometax@gmail.com

Stock Audits Services

• Best Stock Audit services in Delhi-NCR

• Expert Strategy to perform stock audit & reporting variances

• Closed 40+ Stock Audit Assignments in Delhi-NCR

• Looking for Stock Audit services, Try us once!

What is Stock Audit Services in India

Inventory Audit Services is an imperative auditing term referring to the physical verification of the inventory with computed stock maintained by the company. It is also know as audit of inventory management. The major purpose to conduct this activity is to rule out the discrepancies in the book stock and physical stock by passing adjustment entries which has a lot importance of Stock Audit in an Organisation

Even though this statutory process needs to be performed at least once in a financial year by the business institutions, stock audit also known as inventory audit has become a particularly important practice especially for expanding businesses where being on multi-locations, dealing through vendors and dealers is a general pattern. To run the business swimmingly and have an uncanny presence, one needs to keep an unerring track for inventory, being tangible or intangible. And, it is always important to keep into consideration the purpose for which audit is being conducted because of different approaches being used in discrete audit procedures. You can read more about about Stock Audit: Definition, Goals, Significance, and Inventory Audit Procedures in an Organisation

Benefits of Stock Audit Services in India

Prevents Fraud & Pilferage

Stock audit services will disclose any failure due to lack of security which results in loss, theft, or misappropriation. It is also crucial to any sort of inventory losses resulting from wastages, pilferage, dormant and obsolete stock. It also helps in finding out any discrepancies in the packaging and warehouse procedures.

Comparative Profitability

Stock audit enables the true picture of the financial position of the company as the stock that requires replacement or repairment can be worked on efficiently thereby saving the company from any kind of financial loss.

Independent Third Party Opinion

An accurate valuation of the inventory and gap identification in the current inventory management process can be done with the help of professional firm: Stock Audit helps in cross verifications of the stock of the company having multiple business locations

Identification of Slow-moving & Deadstock

Stock audit is necessary to reduce unnecessary investments on stocks and to ensure that you have a proper line balancing in the process. It helps to keep a track of the inventory to avoid any shortage and overstocking of the material. Also, the process of inventory management becomes easier in case the company is dealing with various vendors.

Eligibility For Stock Audit Services

✔ Any business house or individual can get its stock audit/verfication for taking better decision making

✔ Stock audit can be done under statutory requirement of banks etc.

Stock Audit Process and Procedure

Step 1: Detailed Discussion

This involves detailed discussion with our Patron expert to understand your your business, frequency of stock-audit, scope of stock audit,, location, man-days. This step will help us to understand your requirement and set the processes accordingly

Step 2: Detailed Scoping and Quotation

After having the detailed discussion, our Patron expert will have brainstorm internally to design a proper process keeping in mind the your requirements. Patron expert will share the scope and quotation with you for approval. This will help to bridge any communication gap.

Step 3: Stock Audit Plan

Once scope and quotation is agreed; all information will be collected like bank statement, invoices in order start the accounting, set-up software Like tally, Zoho , GST login credentials. Patron expert will analyse the information and communicate with you expected day for next communication.

Step 4: Execution

Patron field staff will execute the stock audit as per plant different locations. We focus on getting the geo-tagging of teams while they visit the premises to ensure timely audit. Further, we have a centeralised control teams which ensure quality of the stock audit conducted by our team. The control team monitor in and out time of each team present on the field, any issues which team or the client is facing.

Step 5: Report the findings

All observations will be presented in the required format to the client. The inventory reconciliation sheet and audit observations are then signed from factory/ premises incharge of the stock.

Documents Required for Stock Audit Services

        Address of Different locations

        Man-days required

• Day within which stock audit is to be finished

• Any sample format in which final report is required

• Nature of stock audit - blind count, sample checking etc.

• Any other information which is required to stock audit

Inventory Audit Service / Stock Audit Company in India

Inventory Audit is an important auditing term referring to the physical verification of the stocks with computed inventory data maintained by the company. The main purpose to conduct this activity is to rule out the difference in the book stock and physical stock by passing adjustment entries.

Although this statutory process needs to be performed at least once in a financial year by the Companies, Inventory audit also known as Stock audit has become a most important practice especially for establishing businesses where being on multi-locations, dealing through vendors and dealers is a general pattern. To run the company smoothly and have an uncanny presence, one needs to have an accurate track for inventory, being tangible or intangible. And, it is always mandatory to keep into consideration the purpose for which audit is being conducted because of different approaches being used in various audit procedures

Benefits of Inventory Audit Service

Stop Pilferage & Fraud
Inventory audit services will disclose any collapse due to lack of security which results in loss, theft, or misappropriation. It is very critical to any sort of inventory losses resulting from wastages, theft, dead and expired stock. It also helps in finding out any variation in the packaging and warehouse procedures.

Liberated Third Party Opinion
A proper valuation of the inventory and gap identification in the current inventory management process can be done with the help of professional Inventory Audit Firm. Stock Audit Service helps in cross verifications of the stock of the company having multiple business in multiple locations

Comparative Profitability
Inventory audit report empower the true picture of the financial position of the firm as the stock that requires replacement or repairment can be worked on efficiently thereby saving the firm from any kind of financial loss.

Checking Slow-moving & Stales Stock
Inventory audit is needed to reduce useless investments on stocks and to make sure that you have a perfect line balancing in the process. It helps to keep a track of the inventory to avoid any shortage and overstocking of the material. Also, the process of stock management will become very easy in case the company is dealing with various vendors.

Stock Audit Services Eligibility

1.Any business house or individual can get its Inventory audit and Inventory verification for taking better decision making
2.Stock audit can be done under statutory requirement of banks etc.

Process Involved in Inventory Audit Services

Elaborate Discussion
This involves detailed discussion with our Audit expert to understand your business, frequency of stock-audit, objective of stock audit, location, man-days. This step will help us to understand your requirement and set the processes accordingly
Detailed Check Out and Quotation
After having the detailed discussion, our Audit expert will analyse internally to design a proper process keeping in mind your requirements. Our Inventory Audit expert will share the scope and quotation with you for approval. This will help to connect any communication gap.
Inventory Audit Plan
Once scope and quotation is agreed; all information will be gathered like invoice, bank statements in order start the accounting, set-up software’s, GST login credentials. Our Audit expert will go through the details and communicate with you expected day for next communication.
Execution
Auditing field staff will execute the Inventory audit as per plan at multiple locations.
Report the findings
All observations will be presented in the required format to the client.

Documents needed for Accounting Services

• Audit locations Address
• Man-days required
• Days and timeline for Inventory Audit
• Any sample format in which final report is required
• Nature of Inventory audit - blind count, sample checking etc.
• Any other information which is required to stock audit

Why Devansh Sharma & Company (Chartered Accountant)

Data Privacy
Data is new fuel which make it most important asset for the business house. Strict policy within our organisation is to ensure no compromise on data confidentiality and data is not shared with the third party. Your information is safe with us.

Eminently Qualified Team
Our team consists of CA, CMA , CS graduate and other supporting staff to make sure you get best services. With 20+ years of experience, our experts use flexible and customized solutions to provide hassle-free services to any industries.

Devansh Sharma & Company (Chartered Accountant) Objective
Devansh Sharma & Company (Chartered Accountant) is the Best Inventory Audit Company and our clients are worldwide. We continuously improve our existing process with the help of our Inventory audit experts and try to find new ways for doing the same tasks. We are committed to reduce the time taken to process any task and give unique experience to our customers.

Stock Audit

The stock audit procedure and services in India is everywhere the same. We have highly experienced and well-trained stock audit professionals that can not only offer you quality results and output but at the same time, help you suggesting for the controlling of cost of the stocks. Physical Count of Stoc..

Stock Audit Services

Stock or Inventory and physical assets such as raw materials can be said to be real assets which need regular monitoring. Stock Audit or Inventory Audit services must be conducted by a team of qualified professionals, who can help you in providing an accurate picture of the supply chain. An exact figure of stock in the supply chain is essential:

• To ensure manage channel work properly

• Correct accounting

• Maintain freshness and quality

• Also to double-check on other data reporting mechanisms

As various companies are operating across the borders through multiple locations, outlets, multiple branches, warehouses, some even with several channel partners, to monitor it is a big challenge. Devansh Sharma & Company (Chartered Accountant) offers focused Stock Audit Services to companies to keep them assured of their physical assets as well as inventories.

Stock Audits are also undertaken for Banks and other financial institutions that have extended credit to the business or entities against assets and physical goods.

What is a Stock Audit?

Inventories are a form of tangible property that is held for sale in the ordinary course of business. Stocks generally constitute a significant portion of the total assets, especially in case of manufacturing and trading entities as well as some service rendering organizations. Audit of inventories hence has got particular importance.

Stock Audit is the physical verification of Inventory. However, sometimes it may also include the valuation of the Inventory, this depends on the terms of reference or the engagement letter of the assignment. One essential thing to remember in a stock audit is the primary purpose with regard to the conduct of the audit.

Every business organization at least must perform stock audit once a year, to ensure and update that the physical stock and the computed stock match. A Stock Audit hence helps in correcting and checking the discrepancies between the physical stock and book stock.

Different audits conducted may have a different purpose, for example in some cases it is conducted to ensure that there is no pilferage (generally for smaller items) or for ensuring that the goods or assets are appropriately stored.

What is the Purpose to Conduct Stock Audit?

Stock Audit is conducted by institutions to ensure:

• Proper Preservation or Storage of Stock.

• To identify the obsolete and Non-moving stock.

• To check whether the stock is insured against all the risks.

• To verify the ownership of the borrower in stock and that finance is made only against the paid value of shares.

• To tally the Age-wise and party-wise book debts analysis to the bankers.

What is the Procedure to Conduct Stock Audit?

If your institution records its stock or Inventory as an asset and also it follows an annual audit process, then the auditors need to conduct the audit of your Inventory. Looking at the huge size of some inventories, they may engage in quite a large number of inventory audit procedures before they are comfortable that the valuation you have stated for the inventory asset is reasonable. some of the inventory audit procedures that are listed below:

• Cutoff Analysis

The Auditors will inspect your procedures for halting any further receiving into the warehouse or shipments at the time of physical inventory count so that any extraneous inventory items are excluded. Typically, they test the last few receiving as well as shipping transactions before the physical count, and also includes the transactions immediately following it, to check if you have got a proper accounts record for them.

• Observe the physical inventory count

The auditor needs to be comfortable with your inventory counting procedures. They will discuss the inventory counting procedure with you, also test count some of the Inventory themselves and also verify that all the inventory tags were accounted. In case you have multiple inventory storage locations, they might test the Inventory in those locations. They can also ask from the custodian of any public warehouse where the company is storing Inventory for confirmation.

• Reconcile the inventory count to the general ledger

The Auditors will trace the valuation accumulated from the physical inventory count to the Company's Ledger for the purpose of verification that the counted balance was carried forward into the company's accounting records.

• Test high-value items

In case there is unusually high-value inventory, the auditors will likely spend extra time counting them in Inventory, ensuring that they are valued correctly. They will also trace their valuation report that carries forward into the inventory balance in the general ledger.

• Test error-prone items

The Auditors will test the items again for specific inventory items, where they had noticed error trend in previous years

• Test inventory in transit

There is a possibility of risk if any inventory is in transit from one storage location to another while conducting the physical count. Auditors test this to review your transfer Paper works.

• Test item costs

The auditors must be informed regarding the purchase costs in your accounting records so that they can compare the amounts in the recent supplier invoices to the costs listed in the inventory valuation.

• Review freight costs

You can either include the freight costs in the Inventory or charge it as an expense in the period incurred. You must be regular in your treatment so that it becomes easy for the auditors to trace a selection of freight invoices through your accounting system to see how they handled.

• Test for lower of cost or market

The Auditors need to follow the lower of cost or market value rule. They can do this by comparing the selected market prices to their reduced costs.

• Finished goods cost analysis

If a significant portion of the inventory valuation is comprised of finished goods, the auditors will have to review the bill of materials for a selection of finished goods items. They must also test them to see if the compilation is accurate of the components in the finished item, as well as correct costs.

• Direct labor analysis

If in cost of Inventory, a company includes direct labor, then the auditor needs to trace the labor charged during the time of production on the time cards or labor ratings to the cost of Inventory. They also need to investigate whether payroll records support the labor costs listed in the valuation.

• Overhead analysis

 If in case you apply overhead costs to the inventory valuation, then the auditors need to verify that you are consistently using the same general ledger accounts for purpose of source for your overhead costs. It is to check whether overhead includes any abnormal costs and test the validity and consistency of the method used applies to overhead costs for Inventory.

• Work-in-process testing

 If you have a major amount of work-in-process (WIP) inventory, the auditors, in this case, will test how you determine the percentage of completion for work in-process items.

• Inventory allowances

The Auditors need to determine whether the amounts that are recorded as allowances for obsolete Inventory or scrap are adequate. It is based on your procedures for doing so, historical patterns, where used reports and also reports of inventory usage. If you do not have such allowances, they will ask you to create them.

• Inventory ownership

The Auditors review the purchase orders to check the ownership of the Inventory in your warehouse.

• Inventory layers

The Auditors will check the inventory layers that you have recorded to verify that they are valid. In case the organization uses cycle counts instead of physical counts, the auditor can still use the physical count procedure. They perform this during one or more cycle counts and can do so at any time. Their tests evaluate the frequency of cycle counts and also the quality of investigations conducted.

What are the Documents Required for Stock Audit?

The Documents required for stock Audit are listed below:

From the Bank Branch Officials

• Sanction Letter.

• Stock Statement duly certified by a CA. for the previous month.

• Bank Statement for the last three months.

• Particulars of Collateral Security need to be checked.

• In case of Company, Copy of Form No. 8 & 32 for creation or modification of Charge.

• Outstanding balance in all accounts with the Bank.

From the Borrower

• Stock Statement as on the date of verification.

• Trial balance or Provisional Balance Sheet as on the date of verification.

• Copy of the latest audited balance sheet.

• Insurance Policy.

• Figures of Purchase and Sales for last 6 months as well as for current month till date of verification.

• Invoices of Purchases & Sales, Stock Register, & other supporting Documents for verifying internal controls.

• Method of valuation followed for Inventory with detailed working.

• Copy of latest Excise or GST Returns filed.

• Break up of Sales into export and domestic.

• Details of non-moving and obsolete stock and also stock held for more than six months.

• ABC analysis of stocks based on the value of annual consumption of major items. (Only if Available).

• Products manufactured with details of licensed capacity, installed capacity and actual utilized capacity.

• Month-wise details of purchases and sales, stock, debtors and creditors for the previous six months.

• Copy of Incorporation of the Company.

What are the Aspects that must be Looked While Performing a Stock Audit?

The following aspects must be taken care of while performing a stock audit:

Reviewing all the cut off procedures and also scrutinizing the follow up.

• Physical Stock Verification.

• Stock Register Verification.

• Reports regarding Stock Pilferage or Damage reports.

• Comparison of Financial Records with others such as stock register

• Reporting, matters related to the discrepancy.

• Valuation and verification of stocks that are in transit.

• Verification of Stock Valuation.

How can Devansh Sharma & Company (Chartered Accountant) Assist You in Performing Stock Audit?

The team in Devansh Sharma & Company (Chartered Accountant)can assist you to:

• Identify Inventory locations.

• Find out from your client where it stores Inventory (If there are multiple locations involved).

• Review the Bank Agreement Letter.

• Get a copy of the client’s agreement with the Bank.

• Check out the warehouse or other storage areas before the physical inventory count so that you know the layout of the land.

About Stock Audit

The stock audit is the process of verifying and validating the physical inventory of a company’s stocks or inventory. It is done to ensure that the company’s records match the actual physical stocks present in the warehouses, factories, and stores. The process helps companies detect discrepancies and prevent fraud, pilferage, and theft.

The purpose of a stock audit is to ensure that a company’s physical inventory is accurately reflected in its financial records. The audit checks for discrepancies between the inventory records and the actual physical count of goods. This helps the company identify any issues with the inventory management system and improve the accuracy of the records.

The stock audit is typically carried out by an independent auditor who is not affiliated with the company. The auditor uses a variety of methods to count the stock, including manual counting, barcoding, and computerized systems. The auditor also examines the inventory records, invoices, and purchase orders to verify that they match the physical stock count.

Choose us For Stock Audit Services

As a professional CA firm based in Ghaziabad and Noida, we are committed to providing high-quality stock audit services to our clients. We have extensive experience in conducting stock audits across a wide range of industries, and we have a team of highly skilled auditors who are experts in the field.

Here are some of the reasons why you should choose us for your stock audit:

• Experience and Expertise: Our firm has been providing stock audit services for many years, and we have developed a deep understanding of the process. We a leading CA firm in Ghaziabad and Noida, have audited companies in various industries, including manufacturing, retail, wholesale, and distribution, among others. Our auditors are highly skilled and have a strong grasp of the latest auditing standards and best practices.

• Independent and Unbiased: We the best CA firm in Ghaziabad and Noida, are an independent firm, and we do not have any affiliations with the companies we audit. This means that we are objective and unbiased in our approach, and we do not have any vested interests in the results of the audit. This makes us a trustworthy partner for our clients and ensures the accuracy and integrity of the audit.

• Thorough and Comprehensive: Our stock audit process is thorough and comprehensive, and we leave no stone unturned in our quest to identify any discrepancies in the inventory records. We the best CA firm in Ghaziabad and Noida use a variety of methods, including manual counting, barcoding, and computerized systems, to ensure that the physical inventory is accurately reflected in the financial records.

• Compliance with Standards: Our stock audit process is fully compliant with the latest auditing standards and best practices. We a leading CA firm in Ghaziabad and Noida adhere to the International Standards on Auditing (ISA) and the Generally Accepted Auditing Standards (GAAS) in the India. This ensures that our clients receive high-quality, reliable audit services that meet the highest standards.

• Recommendations for Improvement: In addition to identifying any discrepancies in the inventory records, we also provide our clients with recommendations for improving their inventory management practices. This can help our clients enhance their operations, reduce costs, and increase their bottom line.

• Competitive Pricing: We offer our stock audit services at competitive prices, and we provide our clients with a detailed breakdown of the costs involved. Our goal is to provide high-quality audit services at a fair price, and we a best CA firm in Ghaziabad and Noida work with our clients to develop a customized audit plan that meets their specific needs.

Our professional CA firm based in Ghaziabad and Noida is the ideal partner for companies looking to conduct a stock audit. With our extensive experience, expertise, independence, and thorough approach, we provide our clients with reliable, high-quality audit services that can help them identify discrepancies, improve their inventory management practices, and make better-informed business decisions.

Contact us today at gstvsincometax@gmail.com to learn more about our stock audit services and how we can help your company.

Importance and Benefits of Stock Audit

Stock audit is an important process for every company that deals with physical inventory. Here are some of the key reasons why stock audit is important:

• Prevent Fraud and Theft: Stock audit helps to prevent fraud and theft by verifying the physical inventory of a company’s stocks. This can help to identify any discrepancies between the inventory records and the actual physical count of goods, which can be a sign of fraud or theft. By detecting these issues, stock audit can help companies prevent financial losses and protect their assets.

• Accurate Financial Records: Stock audit helps to ensure that a company’s physical inventory is accurately reflected in its financial records. This can help to improve the accuracy of financial reporting, which is essential for making informed business decisions. By providing accurate financial records, stock audit can help companies avoid financial penalties and regulatory compliance issues.

• Improve Inventory Management Practices: Stock audit can identify inefficiencies in the inventory management system and help companies improve their practices. By recommending changes to inventory management processes, stock audit can help companies reduce costs, improve inventory turnover, and increase profitability.

• Identify Obsolete or Damaged Goods: Stock audit can identify obsolete or damaged goods, which can be a burden on a company’s finances and operations. By identifying these items, stock audit can recommend their disposal or write-off, which can help to reduce costs and improve overall inventory management.

• Regulatory Compliance: Stock audit is often required by regulatory bodies to ensure that companies are adhering to accounting standards and best practices. By conducting stock audits, companies can ensure that they are in compliance with regulatory requirements, which can help to avoid financial penalties and other legal issues.

The stock audit is an essential process for every company that deals with physical inventory. By preventing fraud and theft, providing accurate financial records, improving inventory management practices, identifying obsolete or damaged goods, and ensuring regulatory compliance, stock audit can help companies operate more efficiently and effectively.

At Devansh Sharma & Company (Chartered Accountant), we offer comprehensive Stock Audit services to businesses and companies in Delhi/NCR region of New Delhi, Noida, Gurugram (Gurgaon) and Greater Noida. Our experienced team of Chartered Accountants are experts in conducting Inventory Audit in India and provide an independent audit opinion. 

What is Stock Audit

Stock Audit is a process of physically verifying the inventory/stock of a company to ensure that the book stock matches the physical stock. It helps in identifying any discrepancies and correcting them by passing necessary adjustment entries.

Stock Audit Meaning

A stock audit, also known as an inventory audit, is a process wherein a company’s inventory is physically counted and verified. The aim is to match the physical count with the inventory levels shown in the company’s books of account and to identify any discrepancies. This process helps in identifying any issues of theft, damage, misplacement, obsolescence, or clerical errors.

What is the scope of Stock Audit

The scope of Stock Audit can vary depending on the size of the company, the type of inventory, and industry-specific requirements. Here are some common elements that are included in the scope of Stock Audit:

1. Physical Verification of Inventory: This involves physically counting and verifying the quantity and condition of the inventory to ensure that it matches with the records maintained by the company.

2. Review of Inventory Records: The Stock Audit team will review the inventory records maintained by the company to ensure that they are accurate, complete, and up-to-date. This will involve checking for discrepancies, such as unrecorded inventory or excess inventory.

3. Valuation of Inventory: Stock Audit can also involve valuing the inventory to ensure that it is correctly valued in the company’s financial statements. This includes verifying the cost of inventory, including raw materials, work-in-progress, and finished goods.

4. Identification of Slow-Moving, Obsolete, Deadstock, and Scrap: The Stock Audit team will identify slow-moving inventory, obsolete inventory, deadstock, and scrap, which can affect the company’s profitability and cash flow.

5. Internal Control Review: The Stock Audit team will review the company’s internal controls related to inventory management, such as segregation of duties, authorization, and approval processes, and access controls. This will help identify areas of weakness and provide recommendations for strengthening controls to prevent inventory shrinkage, pilferage, and fraud.

6. Industry-Specific Requirements: Some industries have specific requirements for inventory management and Stock Audit. The scope of Stock Audit will be customized to meet industry-specific requirements and regulations.

7. Reporting: The Stock Audit team will provide a comprehensive report outlining the findings and recommendations. The report will include a summary of the audit procedures performed, any discrepancies identified, recommendations for improving inventory management practices, and suggestions for strengthening internal controls.

Overall, the scope of Stock Audit is designed to ensure that the company’s inventory is accurately recorded and valued, and that inventory management practices are efficient and effective. This helps prevent inventory shrinkage, pilferage, and fraud, and improves the company’s profitability and cash flow.

Why Perform Stock Audit?

There are several reasons to perform Stock Audit, including:

1. To update the opening stock details in the system.

2. To identify discrepancies between the book stock and physical stock.

3. To update the actual physical stock as book stock.

4. To ensure the adequate preservation and handling of stocks.

5. To prevent pilferage and fraud.

6. To identify slow-moving stock, obsolete stock, deadstock, and scrap.

7. To enable accurate valuation of inventory.

8. To reduce costs and improve the bottom line.

9. To identify gaps in the current inventory management process.

Benefits of Stock Audit

Performing Stock Audit can have several benefits for your business, such as:

1. Direct impact on costs and bottom line.

2. Preventing pilferage and fraud.

3. Identifying slow-moving stock, obsolete stock, deadstock, and scrap.

4. Third-party independent opinion, especially for agent warehouses.

5. Identifying gaps in the current inventory management process.

6. Enabling accurate valuation of inventory.

7. Avoiding pilferage and fraud.

8. Providing instant information about the value of inventory.

9. Reducing costs and improving the bottom line.

In general, a Stock audit means physical verification of the inventory/stock. It can involve the valuation of the stock as well, but it usually depends on the scope and terms of the term of the engagement letter of the assignment. When heading forward, it is very crucial to keep in consideration the sole purpose for which the audit is being conducted because the different audits may have a different approach which would ultimately depend on the ultimate objective of the organisation.

In other words, a stock audit is a statutory process that every company/business should get performed at least once in a particular financial year. As far as the stock audit procedure is concerned, the stock audit process in India involves physical counting of different inventories 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 independent 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

Stock Audit services in India is a domain of expertise, specialisation and core competence for Devansh Sharma & Company (Chartered Accountant). We provide stock audit assurance services in India to various multinational companies. Inventories and physical assets like raw materials and finished goods are very critical assets and need systematic and organised management as a large number of companies are operating across the borders through multiple locations and channel partners, making asset management a challenge. We aim to deliver focused and unique services to companies catering to their needs of keeping a check on their physical assets. Reach us at gstvsincometax@gmail.com for any stock audit assignments.

Stock Audit Services in Noida-Ghaziabad

Call Us Today +91 8882240500

What qualifies as stock audit services?

Stock audit services, in general, means physical verification of stock. It is mostly based on quantity of the stock but can also include valuation of stock in certain scope and terms of engagement letter of agreement.

There are different approaches to stock audit services and the approach depends on the aim of the audit. Also, stock audit services is done to figure out any dispensaries in book stock and actual stock physically present and audited in the premises.

To summarize, Stock Audit is a mandatory and statutory process that every company/business should conduct at the least once a year (more than once is suggested for better hold of stock for the organization) especially for companies that are working in many countries and across borders, having multiple premises.

 We provide stock audit services in Ghaziabad Noida ,Uttar Pradesh ,India. Devansh Sharma & Company (Chartered Accountant) have competent and experienced team of experts in the field of Stock Auditing who will not only help you in the Audit but will also guide you through the process of improving the organizations efficiency and profits. Firstly, we need to understand what a stock audit service is and how it can help your organization After that you can take an informed decision on which of our Stock audit services you can avail.

Benefits of stock Audit Services

• Better planning of future purchase by evaluating the stock movement and changes thereof within the products and services of the organization

• Prevents pilferage and fraud by tallying of stock

• Affirmation of management by floor employees by tallying of physical stock with stock books

• Instant information of value of inventory

• Cost reduction and bottom-line improvement

• Can aid in bringing in third party opinion, especially for warehouses outside of company premises

• Reduction in gaps of inventory management process

Advantages to the organization

• Stock planning and management of various premises becomes easier and more efficient due to the reports from the audits

• Good control mechanism is created and deployed for future for the benefit of organization

The several types of Stock Audits that we provide at Devansh Sharma & Company (Chartered Accountant)

• Physical conditions Audit

  • Advising on best way of arranging inventory

  • Recognition of inventory

  • Advising on ways to prevent deterioration of inventory

  • Identification of work in progress along with stage of completion

  • Disposal/handling of obsolete/ scrap stock

• Compliance to processes and Procedure Audit

  • Physical counting of stock

  • Comparison of physical and recorded stock

  • Random checking of inward and outward stock movement process

  • Checking of sealed inventories

• Associated processes and process audit

  • Audit of stock lying in open or outside premises

  • Upgrading the technology for inventory management

  • Documentation of stock through photographs and reports

Various aspects of the Stock Audit Services: –

• Reports on stock pilferages and fraud on premises

• Stock damage reports

• Verification of physical stock

• Reporting on mismatch in physical and recorded stock

• Valuation of Stock in transit

• Verification of stock valuation

• Comparison of financial statements with stock registers

To Summarize,

We at Devansh Sharma & Company (Chartered Accountant) provide Organizations with complete services of stock audit services in a manner that is beneficial to the organization in the short as well as long term in areas such as stock management, better inventory planning, and prevention of fraud and dead stock and thus helping them in becoming more efficient and streamlined in their processes.

Stock Audits

We are dedicated to provide audit services such as stock and physical asset audit. Raw materials are critical real assets and require systematic management. As large number of companies are operating across the multiple locations and channel partners, stock management is a challenge. We conduct a comprehensive and accurate valuation of inventories by taking into account physical controls, obsolete inventory, scrap and returned goods.

Inventory/Stock Audit Services in Gujarat: Meaning, Limit, Procedure and Fees

The stock audit in Uttar Pradesh is essential for different types of organizations which has significant working capital invested in the inventory. Cities Noida, Ghaziabad, Sahibabad, Agra, Meerut, Delhi in Uttar Pradesh are industrial hub where stock audit is important. It helps to reconcile physical stocks with the stock recorded in the books of accounts. Any discrepancy needs to be investigated, as it might be due to damage, theft, or operational reasons. Additionally, banks require inventory verification to ensure sufficient stock value covers the loans provided to businesses. Therefore, it is crucial to conduct inventory audits at specified intervals, whether you run a retail store, e-commerce, manufacturing unit, franchise, or dealership. Devansh Sharma & Company (Chartered Accountant) is a leading stock auditor firm with a PAN India presence and over 10 years of experience in the inventory verification across different sectors.

What is a Stock Audit?

A stock audit is also known as an inventory audit, which means physical verification of the quantity and value of stock with what is recorded in the books of accounts. The aim is to enhance the overall inventory management system by identifying potential risks, such as any misappropriation or damage and putting checks in place to ensure compliance with regulations. The inventory audit can include raw materials, work-in-progress, finished goods, and fixed assets. The inventory can be kept at different locations like retail stores, warehouses, Godown, manufacturing units, and franchise stores. The stock audit can be a blind count where stock is counted independently of what is recorded in the book of accounts. The stock audit involves suggesting best practices for improving stock management and recommending stock management software.

Stock Audit Applicability & Limit

Many MSMEs conduct stock audits due to management requirements rather than the regulatory requirements. The stock verification is carried out as prescribed under the Companies (Auditor's Report) Order, 2020, also known as CARO, 2020. The CARO, 2020 is applicable to below the organisations.

• Public Listed companies

• The stock audit applicability on private companies in case any of the following limits are satisfied:

  • 
    Gross receipts or revenue is more than ₹ 10 crore in the financial year.

  • Paid-up share capital plus reserves is more than ₹ 1 crore

  • Holding or subsidiary of a Public listed company

  • Borrowings is more than ₹ 1 crore throughout the financial year

Stock and Fixed Asset Audit Reporting Requirement

The auditor needs to confirm on the following aspects related to the stock audit under CARO, 2020:

• Whether management has conducted the stock verification during the financial year

• Whether any discrepancies of 10% or more in the aggregate for each class of inventory were observed and any measures which were undertaken to deal with

• Whether management of the company has maintained and conducted physical verification of fixed assets like plant, property, equipment, etc. at reasonable intervals

• Whether any material discrepancies were noticed and how management has dealt with or reported the same.

Stock Audit Report Format

There is no standard format prescribed for the stock audit report. Every company can have their own format depending on the purpose of the audit. The auditor's report is usually accompanied by an Excel sheet for conducting any further analysis by the company. The report typically contains the following information:

• Location code and name

• Date of stock audit

• Details of SKU

• Count of physical stock for each SKU

• Count of stock as per books of accounts for each SKU

• Variance between physical stock and books of account for each SKU

• Any remarks for the variation

• Signature of manufacturing unit incharge

• Signature of Stock auditor

Stock Audit Procedure

There is a comprehensive guidance on the process of stock audit which help to conduct the audit properly:

Step 1: Planning of audit

It is necessary to know the auditing scope, types of inventories, locations, and specific items to be audited. Stock audit timeline must be set, taking into consideration the company’s function schedule.

Step 2: Conducting Physical Verification

To perform a physical count of the inventory stocks, one must use a systematic approach, like ABC analysis or cycle counting, to ensure comprehensive coverage, and discuss with the appropriate department for the counting process.

Step 3: Physical Inventory vs. Book Inventory

Compare the physical counts with the inventory, which is already recorded, write down the outcomes, investigate and reconcile irregularities, and document the reasons for variations post discussion with team on the ground.

Step 4: Report Preparation and Submission

Make a report of stock audit findings, which includes any irregularities, and suggestions for enhancement. To give a summary record to high-level management, highlight key outcomes, and recommend appropriate actions.

Stock Audit Checklist

Inventory audit checklist that is required to be followed for conducting an effective stock audit:

• Decide on scope of audit, time period and locations to be covered

• Gather required stock / SKUs details against which stock needs to be verified

• Recording the stock auditor team in and out time to the premises

• Recording the physical counts of stock / SKUs

• Ensure all stock / SKUs covered in the SKUs are covered

• Discuss and get the confirmation of the stock audit finding between unit in charge and stock auditor

• Present your findings along with any suggestions for improvement

Stock Audit Fee in Uttar Pradesh

The fee for stock audit services in Gujarat can vary depending on various factors such as the number of SKU, night audit, location, days required, and inventory complexity. The stock audit fee starts from ₹5,499 per man day, which exclude out of pocket cost and varies with the stock audit scope.

Benefits of Stock Audit

• Financial report development: Improving the existing inventory management, which leads to accurate financial reporting. Maintaining well stock ledger means presenting a correct financial condition in the business, and also helps to take better decision.

• Identifying and preventing fraudulent affairs: It helps to identify fraudulent affairs like misappropriation or theft of stock, and any discrepancies, which may affect business severely. It helps companies take necessary actions and prevent future occurrences or financial losses.

• Streamlining stock processes: The stock management must be efficient; thus, it leads to streamlining business operations. It shows the inefficiencies in the stock handling procedure and allows companies to optimize their process for better efficiency.

• Recognizing Overstock and Understock Situations: Overstocking ties up capital, while understocking can result in missed sales opportunities. Stock audits help in recognizing optimal stock levels, minimizing financial losses, and improving cash flow.

Devansh Sharma & Company (Chartered Accountant): Your Stock Audit Company in Ghaziabad Noida Uttar Pradesh

Devansh Sharma & Company (Chartered Accountant) is a leading stock audit service provider firm in Gujarat with a PAN India presence. The Devansh Sharma & Company (Chartered Accountant) team has more than 10 years of experience in inventory audits, assisting companies like Nykaa, Blinkit, and Asian Paints. Devansh Sharma & Company (Chartered Accountant) provides best-in-class services at transparent pricing with a high degree of precision.

Conclusion

Stock audits are important for organizations where significant money is invested in the inventory. Organizations like manufacturing units, car dealers, franchisee retail stores, pharma companies, FMCG, and quick service restaurants deal with a lot of inventory, which makes auditing crucial. It ensures the correctness of the stock recorded in the book of accounts and highlights any discrepancies like theft, slow-moving items, and supply chain issues related to inventory. Thus, stock audits help to improve the profit and loss of the organizations.

Need for Stock Audits

Stocks are the most crucial assets for any organisation. With organisations expanding in size and operating from multiple locations, stock audits play a pivotal role for such organisations:

• Help in year-end valuation of actual stocks of the entity for preparation of financial statements.

• Warrants the efficacy of the internal controls around stocks accounting and maintenance.

• Tracing any fraud and pilferages being carried by internal staffs and employees and ruling out the possibility for any potential frauds.

• Assurance for effectiveness of controls, in case of third-party warehouses.

• Identification of any slow-moving stock, dead or obsolete stock and scraps.

• To ensure that stocks are covered against all the risks.

• To have a deep scrutiny and ABC analysis of the stock

Services Covered under Stock Audits

• Performing physical verification of stocks at designated warehouses and sales offices.

• Internal Audit of stock related controls, both, at head offices and other locations.

• Reconciliation between stocks as per books and actual stock present at locations.

• Scrutinizing cut-off procedures for stock recording at financial year end.

• Stock report preparation for third-party warehouses.

• Reporting upon expired, pilfered or damaged stock content.

What Devansh Sharma & Company (Chartered Accountant) Guarantees?

Aplite is a team of qualified professionals who integrate with your team to conduct audits. Our team extends its years of experience to every task it delivers. Devansh Sharma & Company (Chartered Accountant) has always been up and pioneering new techniques and technologies for conducting audits. We work on the following pillars, which makes us unique than the rest of the industry:

1. 100% Coverage

We undertake to cover all locations and sites containing any kind of stocks, as decided. Also, we cater to all the industries and all kinds of stocks. We have always delivered our services dedicatedly and believe in leaving no stone unturned to make our clients utmost satisfied.

2. Integrity and Confidentiality

We understand the trust and reliance you place in us as your financial advisors and auditors and thus, we make sure there are no breaches and misconceptions. We deliver our audit services with full zeal and integrity. We have never failed in communicating any discrepancies at client’s location and have always stood up till the expectations of our clients and all the stakeholders.

3. Quality and Passion

We have set standards of delivery and all our audit services are aligned to such standards. We give utmost importance to quality of our tax services and our team of tax consultants is driven by utmost passion and fire. With a mission to outperform, we have always been regarded as one of the best financial advisors and consultants delivering best audit services, by all our stakeholders.

3. Timeliness

We deliver all the work as per agreed timelines because we understand the importance of financial deadlines. We strictly abide by punctuality and never miss our targets. We make sure to complete the stock audits on time, while ensuring full coverage and quality of audits.

Stock Inspection

At S.Q. Surveyors, our Stock Inspection services are designed to enhance the efficiency and accuracy of your inventory management. We understand the critical role that stock plays in your business operations, influencing everything from customer satisfaction to financial performance. Our comprehensive stock inspection approach goes beyond traditional inventory checks, providing you with valuable insights to optimize your supply chain.

Key Features:

1. Accuracy Assurance: Our meticulous stock inspections ensure the accuracy of your inventory records, reducing the risk of discrepancies and losses.

2. Supply Chain Resilience: Identifying vulnerabilities in your supply chain, our inspections help fortify your operations, minimizing disruptions and enhancing overall resilience.

3. Optimized Stock Levels: We provide actionable recommendations to optimize stock levels, preventing overstock or stockouts and improving overall warehouse efficiency.

4. Risk Identification: Our stock inspection services include an assessment of potential risks, allowing you to proactively address issues that could impact your business continuity.

5. Customized Solutions: Recognizing that each business has unique needs, our stock inspection services are tailored to align with the specific requirements of your industry and operations.

How It Works:

1. Consultation: We begin with a consultation to understand your business, industry dynamics, and specific stock management challenges.

2. On-Site Inspection: Our experienced team conducts on-site inspections, utilizing advanced methodologies to assess stock accuracy and identify areas for improvement.

3. Comprehensive Analysis: We analyze inspection findings comprehensively, considering factors such as stock levels, warehouse layout, and historical data.

4. Actionable Recommendations: Based on our analysis, we provide actionable recommendations to enhance your stock management practices and fortify your supply chain.

5. Follow-Up Support: We offer ongoing support to ensure the successful implementation of recommendations and provide assistance for any additional stock management needs.

At S.Q. Surveyors, we go beyond the conventional approach to stock inspection, delivering a service that empowers your business to thrive in a dynamic market. Our commitment to accuracy, resilience, and customized solutions makes us your trusted partner in optimizing stock management and ensuring the smooth flow of your operations.

About 

We provide stock audit services in Ahmedabad,Gujarat,India.AT K M GATECHA & CO LLP have competent and experienced team of experts in the field of Stock Auditing who will not only help you in the Audit but will also guide you through the process of improving the organizations efficiency and profits. Firstly, we need to understand what a stock audit service is and how it can help your organization After that you can take an informed decision on which of our Stock audit services you can