Stock Audit Services in India

What is a Stock Audit?

A Stock Audit is a physical verification of inventory and an evaluation of the accuracy of stock records maintained by a business.
It is carried out to ensure that the quantity, quality, and value of stock reported in the books match the actual stock held.
Stock audits are often required by banks, financial institutions, or management to safeguard assets and ensure proper working capital management.

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Objectives of a Stock Audit

• Verify physical stock against recorded inventory
• Identify discrepancies in quantity or valuation
• Prevent pilferage, theft, or misappropriation
• Assess the quality and usability of stock
• Ensure compliance with accounting standards and lender requirements
• Assist in accurate financial reporting and tax compliance

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When is Stock Audit Required?

• Mandatory by Banks/Financial Institutions: When loans are granted against stock hypothecation
• Internal Control: For management to track inventory accuracy
• Mergers, Acquisitions, or Restructuring: For valuation purposes
• Year-end Closing: For financial statement accuracy
• Special Investigations: In case of suspected mismanagement or fraud

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Scope of Stock Audit

• Physical verification of raw materials, work-in-progress (WIP), and finished goods
• Matching stock records with books of accounts
• Checking stock ageing reports
• Ensuring valuation methods (FIFO, LIFO, Weighted Average) are correctly applied
• Identifying obsolete or damaged stock
• Verifying goods in transit
• Ensuring compliance with loan agreement covenants in case of bank audits

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Documents Required for Stock Audit

• Inventory register and stock statements
• Purchase & sales records
• Goods receipt notes (GRN) & delivery challans
• Production records (for manufacturing units)
• Bank stock statements submitted for loans
• GST returns for stock reconciliation
• Insurance policy details for stocks
• Records of stock in bonded warehouses or transit

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Benefits of Stock Audit by Calculus

• Accurate inventory records to avoid financial discrepancies
• Detection of theft, leakage, or mismanagement
• Enhanced working capital control
• Compliance with banking and lender requirements
• Timely reporting for financial statements
• Support in tax assessments and GST audits
• Recommendations for inventory management improvements

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Why Choose Calculus for Stock Audit?

• Experienced professionals in bank-mandated stock audits
• Detailed reporting with actionable insights
• On-site physical verification with photographic evidence
• Sector-specific expertise (manufacturing, trading, retail, etc.)
• Confidentiality and accuracy in every audit

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