Stock audit of oil industry

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Sumit mangal (Querist)
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06 February 2016 Dear Sir,
I am a trainee article under CA. and i have appointed as to do stock audit of oil industry which is borrower of Union Bank of India. sir i want to know special considerations while doing stock audit of oil industry. so that i can performs as per requires SA & AS ./...

Thanks & Warm Regards :

Sumit Mangal

Ganeshbabu K

Ganeshbabu K (Expert)
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24 February 2016 1)Physical stock of crude and finished petroleum products is calculated by taking dip measurement of each tank.
2)The measurement of dip is referred to calibration chart of each tank to find out the volume of the product.
3)The calibration chart, which is certified by CPWD contains the details of volume of the products corresponding to dip measurement.
4)The quantity ascertained by physical measurement is verified with books stock to find out actual loss/gain on daily basis.
For more ideas............&
Regarding valuation of stocks and etc you are requested to learn from this book

http://resource.cdn.icai.org/20999tg_oilgas_downstreamIA.pdf