15 October 2010
Dear Experts, VERY URGENT SIR.... Already posted this query but no reply sir... 1)What is stock audit? 2)If we have to do a stock audit on the request of a bank how it has to be done? 3)What are all the vital points that we have to bear in mind while doing the stock audit? 4)Should we have to value the stocks? If yes can we get an expert opinion/certificate for the same? Thanks & Regards, Rajesh.
I suppose this is in connection with a loan taken by hypothecating stocks. Bank would like to know whether the stock actually existed, its valuation is correct and it provides enough security (coverage) to the loan given. You may go through the list of stocks and physically verify them (randomly) and also check the valuation.
20 October 2010
2)If we have to do a stock audit on the request of a bank how it has to be done?
Get the stock sheet from the loan hoder Physcially verify by visiting locations Check the valuation (go through invoices, etc) Be cautious about overstating Do validity testing using ratios like number of days stocks, ABC classification, slow / non-moving stocks, etc
20 October 2010
4)Should we have to value the stocks? If yes can we get an expert opinion/certificate for the same?
You can go through the records like invoices. I dont think an expert opinion is necessary unless the value is material and really requires an expert's opinion.
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