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Stock taking

Statutory Audit 1168 views 7 replies

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??????

Replies (7)

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 

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???

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.

 

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

Charu

MRL is not an ordinary document as these are signed by the management. So you can reply on it. 

Also for more, you should take the matter to your C.A (partner incharge) .

Regards

Thanku manoj

But MRL is not substitute for audit procedures. what i recall

MRL is the last option availale wid auditor

Charu 

MRL is first thing and not the last .... First thing is taking MRL from management whenever you visit for audit. Please read SA 580.


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