Stock/Inventory Audit.
A stock audit confirms that the inventory in your books exists, in the quantities and condition recorded, and that it is valued correctly. We plan and observe or conduct physical counts at each location, reconcile them with the stock records, investigate differences and review valuation at the lower of cost and net realisable value.
Typically 1–3 days per location for counts, plus about a week for reconciliation and reporting. The number of items and locations and the quality of stock records drive the time.
A partner — a chartered accountant or company secretary — from the first call to sign-off.
Based on your situation, and fixed in writing before any work starts.
Is this for you?
- Manufacturers, traders and distributors with stock at several locations
- Borrowers whose banks require stock audits against working capital limits
- Companies whose statutory auditor needs reliable count results
- Businesses seeing unexplained shrinkage or slow-moving stock
What you receive at the end.
- 01Physical verification report by location
- 02Reconciliation of physical and book stock
- 03Valuation and obsolescence review
- 04Observations on stock controls
Stock/Inventory Audit, step by step.
Typically 1–3 days per location for counts, plus about a week for reconciliation and reporting. The number of items and locations and the quality of stock records drive the time.
- 1
Count planning
We agree locations, count dates, cut-off and count teams, and issue count instructions.
- 2
Physical verification
We observe or carry out counts, test-count samples and note damaged, obsolete or third-party stock.
- 3
Book-to-physical reconciliation
We reconcile count results with the stock ledgers and investigate differences.
- 4
Valuation review
We test costing and net realisable value, and identify slow-moving and obsolete items.
- 5
Location-wise reporting
We report results location by location, with discrepancies and improvements to stock controls.
What we need from you.
Don't have everything yet? We send a short checklist after the first call and work with what you have.
- Stock ledgers and item-wise listings by location
- Costing method and cost sheets
- Recent purchase invoices and selling prices
- Inward and outward registers around the count date
- Stock statements submitted to banks, if any
- List of third-party and consignment stock
The fee depends on your situation. After a short call, the partner who will do the work tells you what's involved and gives you a fixed fee in writing — before any work begins.
- Government fees and statutory charges are billed at actuals.
- When you pay — upfront, in stages or on completion — is agreed in writing with the fee.
Questions about Stock/Inventory Audit.
Ready to discuss Stock/Inventory Audit?
30-minute confidential call — no proposal, no commitment. A partner will write back within one business day.