Steps for stock audit

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Querist : Anonymous

Querist : Anonymous (Querist)

23 February 2013 dear all

please help me how to do stock audit ........... what is prime step

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Guest (Expert)

23 February 2013 DEAR,

PLEASE FIRST GO TO THE BANKER'S BRANCH OF THE PARTY AT WHERE SUCH PARTY IS ENJOYING THE CREDIT FACILITIES...........

SEE ALL THE DOCUMENTS OF THE PARTY AT BANK LIKE REGULARITY IN FURNISHING STOCK STATEMENTS AND BOOK DEBT STATEMENTS PERIODICALLY, DETAILS FURNISHED IN SUCH STOCK AND BOOK DEBT STATEMENTS, SEE LEDGER OF THE PARTY IN BANK WITH DETAILED TRANSACTION, UTILISATION OF LIMIT, REGULARITY IN SERVING INTEREST CHARGED BY BANK EVERY MONTH END, SEE PROPERTY FILE ALSO WITH FULL DETAILS, DOCUMENTATION OF PROPERTY MORTGAGED TO BE DONE EVERY THREE YEARS TIME PERIOD, COMPARE STOCK MENTIONED AS ON 31ST MARCH MUST BE TALLIED WITH BALANCE SHEET AS ON THAT DATE, SEE REGULAR DEBIT AND CREDIT ENTRIES IN THE LEDGER AT BANK.

NOW AFTER THAT GO TO PARTY FACTORY BUILDING AND GET ALL THE FINANCIAL STATEMENTS FROM 1ST APRIL TO YOUR VISIT DATE, GET STOCK STATEMENT AS OF YOUR VISIT DATE, COUNT STOCK AND IF YOU FIND ANY VARIATION THEN ASK PARTY FOR RECONCILIATION, SEE THE BALANCE SHEET OF THE PARTY AND IF YOU FIND BANK ACCOUNTS IN ANY OTHER BANK THEN ASK THE REASON FOR THE SAME COZ BY THAT ACCOUNTS PARTY CAN MISUTILSE THE FUND FINANCED.

SEE THE BOARD OF THE BANKER AT MORTGAGED PREMISES, HOYPOTHECATED STOCKS AND PLANT & MACHINERIES STORED.

IN LAST YOU CAN ALSO ASK THE STRATEGY OF PURCHASING, SELLING, PRODUCTION, REALISATION OF DEBTORS, PAYMENT TO CREDITORS, ABOUT PRODUCTION CYCLE, WHAT ARE THE NEGATIVE FACTORS WHICH MAY AFFECT IN RECESSION.

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