Although the process may vary depending on the nature inventory and organisation, the process of stock audit in most cases is as follows:
1) Firstly take the cut off point of inventory i.e. say if you are going to verify inventory as on today's date ensure that all the inventory is taken into account and there should not be any movement in inventory(inward/outward) during the audit process otherwise it will be difficult for you to reconcile the inventory.
2) After ensuring that all inventory is taken into account, take the printout of inventory as appearing in books. Make suitable columns mentioning book stock, physical stock, difference and remark.
3) After physical verification of inventory, calculate the differences, obtain the reasons for the same from auditee (if any) and difference if any remaining will be short/ excess
step 4) Make a report in suitable format, sign it and obtain signature& Seal of auditee.
Also, obtain signature on the stock sheets(on which you have done P.V) of person (appointed by client on his behalf for the purpose of P.V.)
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