Wednesday, 29 June 2016

Instructions issued by the auditor for the Physical stock verification and inventory verification

Auditing is a regular activity that is conducted by the auditors for a company, organization or business. Auditing helps the company in certain ways. With the help of auditing a company can analyze their flaws in the daily operation and can correct them for the future growth. Auditing can be done of processes, products, quality, and inventory and for many other components in a company. 


Auditing can be of two types and that are the internal audit and external audit. Internal audit is conducted by the in-house auditors whereas external audit is conducted by the external auditors. There is some of the instruction that is issued to the company by the auditors for the physical stock verification or inventory verification. Some of these guidelines are discussed below that can help a company or business:
The list of the physical stocks or inventory is to be provided according to the item and location. 
The purchases that are not recognized should be always marked separately. 
The stock that is being sold but not delivered to the customer should be kept separate and marked properly. 
The stocks and inventory that is being used regularly should be issued in advance so that there will be no hamper in the production line. 
Old stocks should be market separate.
The list of the inventory should be maintained properly and accurately. 
These are some of the common instruction given. For more details on physical stock verification and inventory verification, call us at +91-11- 66797769 or e-mail at info@boundlessindia.com or visit us at http://www.boundlessindia.com.

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