19 March 2016
Main Objective of Stock audit is to compute the real drawing power of the the borrower.
Check for the Correctness of these aspects in respect of inventory - Quantity , Valuation and ownership. also verify the correctness and recoverability of book debts. Considering these aspects find the correct value of stock and book debts and compute Drawing power as per sanction letter.
apart from this reporting format of different banks also require auditors comments on other areas also. like internal control systems, comments on accounts and inventory records, various ratios, insurance covers, limits from other banks etc.
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