Stock & Inventory Audit
A stock audit involves physical verification of inventory, reconciliation with book records, and assessment of valuation methods. It is required by banks annually for working capital borrowers, by companies for accurate financial reporting, and by management to detect pilferage and inefficiencies. BSP Associate conducts stock audits at client premises — counting physical stock, verifying valuation, checking slow-moving and dead stock, and preparing a detailed stock audit report.
What's Included
Everything you get when you engage BSP Associate for Stock & Inventory Audit.
- Physical stock count and verification at the premises
- Reconciliation of physical count with book records
- Valuation review — FIFO, weighted average, or specific identification
- Slow-moving, non-moving, and obsolete stock identification
- Damaged and unusable stock assessment
- Stock audit report in bank-prescribed format
- Recommendations on inventory management improvements
Documents Required
Have these ready before you reach out — it speeds things up considerably.
Documents You'll Need
Please arrange these before your consultation
- Stock ledger and inventory records as on the audit date
- Purchase invoices and goods receipt notes
- Sales invoices and delivery challans
- Previous stock audit report (if any)
- Bank's stock audit format or requirements (if bank-mandated)
- Valuation policy and accounting policy for inventories
Don't have these? We'll prepare them for you.
BSP Associate can draft and file all of the following
- Physical stock count sheets
- Stock reconciliation statement (physical vs books)
- Stock audit report in bank or management format
- Slow-moving and dead stock analysis
Frequently Asked Questions
Common questions about Stock & Inventory Audit.
Banks extend working capital loans (cash credit, overdraft) against the security of inventory and receivables. A stock audit verifies that the inventory actually exists, is correctly valued, and matches the stock statements submitted to the bank. It protects the bank against inflated stock claims and helps the borrower identify inventory management issues. Most banks require annual stock audits for borrowers with working capital limits above a threshold.
BS Balaji
Founder & Principal Consultant
Have questions about Stock & Inventory Audit? Get a free consultation — no commitment, no jargon.
Book Free ConsultationWhatsApp UsLet's Sort Your Taxes & Compliance Together
Book a free consultation with BSP Associate and get a clear picture of your tax obligations, deadlines, and savings opportunities — no jargon, no surprises.