- which are held for sale in the ordinary course of business;
- In the process of production for such sale; or
- In the form of material or supplies to be consumed in the production of goods or services for sale
Stock Audit is an independent check on the functions of the management, which has some value in the eyes of law and the taxation authority. Audit refers to thorough check of the entire system so that it facilitates Prevention and early Detection of frauds.
Stock audit is of great interest and importance to two sets of people in an organization – the Financial Controller and the Planning Manager. While the Financial Controller is concerned about the accuracy of the stock value, the Planning Manager is concerned about the accuracy of the stock quantity.
Stock & Receivables Audit is one of the most important aspect of the overall exercise of audit of any organization. In stock and receivable audit, auditor ensures himself about the quantity, quality, composition and actual value of the stock & the debtors.
- To find out whether there is a sufficient and suitable environment for preservation of the stock & securities.
- To find out whether the stocks & securities are safeguarded against theft or misuse by any person at any time.
- To find out whether the stocks and securities can get degraded