Inventory stock audit is the systematic verification of physical stock against book records to confirm quantity, quality, valuation, and location of materials held by a business. It is a critical control activity for manufacturers, traders, retailers, and warehouses.
With inventory often forming the largest current asset on the balance sheet, even small discrepancies can distort financial statements, impact GST and tax liabilities, and signal weaknesses in stock management, pilferage, or process controls.
We provide independent inventory and stock audit services covering physical verification, valuation, ageing analysis, and reconciliation with books — helping businesses, banks, and auditors gain assurance over the existence, condition, and value of inventory.
End-to-end physical counting of raw materials, WIP, finished goods, stores, spares, and consumables across locations.
Reconciliation of physical stock with ERP, books, GST returns, and stock registers to identify and explain variances.
Verification of valuation as per AS 2 / Ind AS 2 — FIFO, weighted average, or specific identification — and checking of cost components.
Independent stock and receivables audit for banks and lenders to verify drawing power, security cover, and borrower compliance.
Ageing analysis, identification of dead stock, and recommendations on provisioning, write-offs, and disposal.
Design and execution of cycle count programs and perpetual inventory audits for high-turnover businesses.
Review of inward, storage, issue, and dispatch processes; SOP and segregation of duties evaluation.
Comprehensive report with shortages, excesses, observations, root causes, photographs, and corrective recommendations.
Understanding business, locations, item categories, valuation method, and audit objectives.
Establishing cut-off, freezing transactions, labelling stock, and preparing count sheets.
Independent counting, weighing, tagging, photographing, and sample test checks of stock.
Comparison with books, variance analysis, ageing, and identification of slow / non-moving stock.
Audit report with findings, recommendations, and follow-up support for control improvements.
Partner with our stock audit experts to verify, value, and tighten controls over every item on your shelves.
Talk to a Stock Auditor