Stock Audit

Stock Audit:

• What is a stock audit?

Stock audit is verification of inventory of an organization. The purpose of this audit is to physically quantify the position of inventory in order to check the authenticity of the inventory records. Stock audit is a very significant process where inventory is an integral part of the business.

• Frequency of Stock Audit

Stock Audit is required mostly at the end of a reporting period. For example, where reporting period is a quarter, a stock audit may be required for quarter end. Even where a reporting period is annual, it is recommended to carry out stock audit at least twice in a year.