INVENTORY (STOCK) AUDIT
Inventory (Stock) Audit
Stock Audit is an Audit of Inventory to conduct a thorough search and Audit on the contents of inventory as to its age, suitability, movement, purchase price, market price, and direct and indirect cost allocation besides the fair valuation. The inventory audits are mainly conducted for the banks and financial institutions who have lent to their corporate clients against the security of stocks.
The entities that operate with huge stocks and from different stock locations also seek inventory audits at periodical intervals from independent third party. These audits are thus for all independent third-party evaluation as to the physical availability, correct value as also to technically verify that the item placed to the bank or to the lenders are marketable and not obsolete and slow moving. These audit services are also part of the due diligence process normally in the merger and acquisitions exercise opted many a time as an independent third party assessment by the corporate clients and the listed companies.