Inventory Stock Audit
Inventory is one of the most sensitive and easily misreported areas in any business. Even small gaps in stock records can distort profitability, impact working capital, and raise red flags during audits or assessments.
At N D Savla & Associates, we approach inventory stock audits with one clear objective: make sure what’s on paper actually exists, is valued correctly, and is fully aligned with your financials.
We don’t just count stock. We test systems, identify leakages, and give you clarity on where things stand.
What we do
- Physical stock verification across warehouses, stores, and multiple locations
- Reconciliation with books to identify shortages, excesses, and discrepancies
- Valuation review as per applicable accounting standards (FIFO, weighted average, etc.)
- Cut-off testing to ensure purchases and sales are recorded in the correct period
- Slow-moving & obsolete stock analysis to highlight dead inventory
- Process evaluation to check how inventory is tracked, controlled, and reported
- Internal control review to reduce pilferage, errors, and misstatements
Where this helps
- Statutory audit readiness
- Bank stock statements and drawing power calculations
- Internal control strengthening
- Fraud detection or suspicion of stock manipulation
- Business valuation or due diligence
Our approach
Here’s the thing. Inventory issues rarely come from one mistake. They come from weak processes over time.
So we don’t stop at reporting differences. We show you:
- Why the mismatch happened
- Where controls failed
- What needs to change going forward
F.A.Q.
It’s a detailed verification of physical stock along with reconciliation to accounting records to ensure accuracy in quantity and valuation.
Depends on the business. High-volume or high-value inventory businesses should ideally do it quarterly or even monthly. Others can do it annually.
Not always. But banks often require it for working capital limits, and it becomes critical during statutory audits or funding rounds.
Stock registers, inventory reports, purchase and sales records, GRNs, delivery challans, and valuation workings.
We review the method used (FIFO, weighted average, etc.) and test whether it is consistently applied and compliant with accounting standards.
Yes. Unusual variances, missing stock, or manipulation patterns often come out during detailed verification.
It depends on the size and complexity of inventory. It can range from a day for small setups to several days for multi-location businesses.
