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Stock taking

charudatta (auditor) (191 Points)

25 March 2014

We are going to conduct a stock audit on 31 st march. They are preparing stock statement which has only quantitative details of material. The rate per item and value in rupees are not provided by them.

we asked to put in the sheet as company has huge stock and while checking we can concentrate on the valuable items more easily.

But they did not agree with us. Is there action correct??????

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7 Replies

Manoj Mehta (Head Of Department (Accounts & Finance)) (1479 Points)
Replied 25 March 2014

Dear charudatta

Yes you can demand for any kind of details for stock taking as per your need.

I also perfer taking stocks as per value of product. It make classifiaction of product better while doing stocks. Also it help in reporting part also

Regards

charudatta (auditor) (191 Points)
Replied 25 March 2014

Thanx Manoj for reply

But i would like to know are they bound to give such details.?

And if they do not give what other alternative audit procedures are available.

Does Mere management certification/representation sufficient???

Manoj Mehta (Head Of Department (Accounts & Finance)) (1479 Points)
Replied 25 March 2014

You cant bound them but can mention about the same in your report to partner incharge and in observation sheet. Take management representation letter also.

For now you just have to base your stock taking on the basis of past audits. Personal analysis on spot.

charudatta (auditor) (191 Points)
Replied 25 March 2014

But how to believe in MRL????

They can provide false info also.

If they would have given rate in stock statement, one can check and ensure himself the value of actual stock by seeing purchase invoices at random basis.

This is not possible when they just give a MRL of value of entire stock