04 December 2008
The following instructions may be given before carrying out the stock audit:
1. Locationwise - itemwise lists of stocks may be obtained. 2. Purchses not recognised should be earmarked separately. 3. Stock sold but pending for delivery should be identified and kept separately. 4. Routine stocks should be issued in advance in the production/ workshop so that the production process is not hampered. 5. The movement of stock during the exercise should be restricted to the bare necessary requirement. 6. Old, obsolete and slow moving stocks should be identified separately. 7. Stocks issued or received on approval should be listed so as to adjust the list of stock in hand accurately. These should be supported by copies of challans with proper receiving by the parties concerned. 8. All challans, bills etc should be readily available which may be ticked with the stock register and books of accounts. 9.Valuation method may be analysed. 10.Due care should be taken in valuation for unpaid stocks.
04 December 2008
In case of stock audit care should be taken to see that amounts and quantitative details of opening stock, purchases, sales, purchases return, sales return, & closing stock are duly verified. so that there is no error or omission either in value or in quantitative detail . after that go for verfication and valuation of stock.
CAclubindia
