Overview
Overview
Stock audits verify the existence, condition and valuation of inventory, often at the request of lending banks for working capital facilities.
We perform physical verification, compare it with records and stock statements, and report on valuation and ageing.
Who this is for
- Borrowers with working capital limits
- Manufacturers and distributors
- Businesses with multiple warehouses
Scope of work
The precise scope is confirmed in writing for each engagement. It typically includes:
- Physical verification on sample or full basis
- Reconciliation with books and stock statements
- Valuation and ageing review
- Report in the bank's prescribed format, where required
Documents usually required
- 01Stock statements submitted to bank
- 02Inventory registers
- 03Purchase and sales records
We share a checklist specific to your case. Please do not send identity or financial documents by email — existing clients can upload them securely through the client portal.
How we work
- 1
Engagement acceptance
Independence checks, engagement letter and agreement on scope, timelines and reporting.
- 2
Planning & risk assessment
Understanding the entity, its controls and the areas that need the most attention.
- 3
Fieldwork
Testing of transactions, balances and controls, on-site or remotely, with regular status updates.
- 4
Discussion of findings
Observations are discussed with management before the report is finalised.
- 5
Reporting
Issue of the report in the applicable format, along with a management letter where relevant.
Frequently asked questions
Who appoints the stock auditor?
Banks typically appoint stock auditors from their panel; businesses may also commission stock audits for internal purposes.
Last updated 11 Oct 2026. This page is general information, not professional advice. Applicability depends on your facts and the law in force; we do not guarantee any particular outcome, saving, registration or approval.