stock audit

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Bhavin Thakkar (Querist)
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19 February 2010 hey anyone can tell me how to do a stock audit of manufacturing concern....ok jus give some report or format if u have.....pls...thanks in advance

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
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20 February 2010 1. Check whether Perpetual Inventory System is there.

2. Check whether suitable cost accounting system has been installed.

3. Check the process of difference between physical stock with book records.

4. See the valuation of Raw Materials, WIP and Closing Stock as per Accounting Standards.

5. See which cost formule are used by the mfg. concnern.

6. See the previous audit report; if available.

7. See the records maintained by the mfg. concern and its way of reporting to the management.

8. See how many times internal checks have been carried out.

9. Any other factors to be checked will depend upon the nature of the manufacturing concern, its size etc...