stock audit programe

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This query is : Resolved

CA Anil Sah (Querist)

20 June 2008
how will be i prepare a programe for physical stock verification. what should be paper will be collected before stock audit

Manish Taneja

Manish Taneja (Expert)

23 June 2008 Hi Anil,

Firstly you will have to understand the nature of the stock you are going to verify. At the time of verification, you must ensure that there is no movement of the stock / or if at all there is any you will have to take alternative measures to have the control over the movements.

Ideally, it is important to verify high value and low quantity items but at the same timethe other items must not be ignored.

Documents to be collected and procedures to be followed includes:
1. Obtain Inventory schedules

2. Identify obsolete/ non-moving/ slow-moving/ damaged stock

3. Obtain the cut-off for the Goods/Material Requisition Notes against which items were issued to the user departments (note requisition number, date, user department, etc.)

4. Obtain cut-off for the Goods Receipts Notes (GRNs) for all the Stores (note the GRN No., date, Store, etc.)

5. Obtain the signatures of the Stores In-charge/ official getting the stock count done

6. Obtain explanations for any differences noted in the physical count

Hope you will have clearity on the topic:)

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