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|Type Of Service Contract||Retainer Based|
|Type Of Service Provider||Consulting Firm|
|Type Of Business||Physical Verification Of Inventory|
What are Inventory Audits?
- Inventory audits check to ensure that financial records match a company’s inventory records and that those records align with a physical inventory count. As part of that physical count, employees go through every item in the warehouse, typically with the assistance of technology that adds up and records products on hand. Audits add another piece to this, bringing in a third party to confirm not only the quantity of inventory but also its quality and condition — and identify any instances of theft, damage, or misplacement.
Why are Inventory Audits Required?
- Stocks are the most valuable asset for any business and also highly susceptible to pilferage, damage, expiry, and wastage . The objective of a Stock Audit is to ensure the existence, accuracy, ownership rights and also verify the realizable value of the items inthe company’s inventory. Accurate accounting of inventory is also essential to a robust bookkeeping system and MIS reporting. Since the inventory has a lot of movement during business days, the process of routine physical verification needs proper planning,resource mobilization and expertise.
- Our team of experts can assist you in inventory verification and provide more insights into your stock, along with a proper reconciliation of the existing stock records.Through our inventory verification and valuation services, we identify the excess/shortage of materials in stock and identify the old/damaged materials in inventory. It helps the management to reduce wastage and losses arising due to damage or obsolescence stock.
Which Companies are Required to do Inventory Audit?
- The Companies (Auditor’s Report) Order, 2016 (CARO 2016) also requires auditors to comment on “Whether physical verification of inventory has been conducted at reasonable intervals by the management and whether any material discrepancies were noticed and if so, whether they have been properly dealt with in the books of account”. Companies into manufacturing of any type of inventory must get their inventory periodically verified. Also, Companies having multiple distributors and retail outlets, must ascertain checks at all levels to know discrepancies if any.
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|Working Hours||24 Hour|
|Type Of Verification||Physical Verification|
|Service Location||Pan India|
Every business needs to ensure regular Fixed Asset Verification for the purpose of tracking and asset inventory management.
Asset Reconciliation is a time saving mechanism enabling more effective utilization of manpower reducing cost to company and frivolous man-hour spends.
It includes financial history as well that assists organizations in making informative decisions. These can be maintained at department, business, location and corporate level and a periodic reconciliation is needed to ensure the veracity of these records. Ideally, a quarterly audit of movable fixed assets is recommended, though this can vary from industry to industry.
What is the Physical Verification of an Asset ?
- Physical Verification of Fixed Assets is a procedure that is conducted by auditors to ensure that the assets of an entity exist in reality. It is of extreme importance for every organization to carry out the physical verification of fixed assets, at the end of every financial year.
Why is Physical Verification of Assets Important?
- In companies where multiple classes of assets exist, and are widely dispersed across departments, offices and even people, keeping track of all of them can be a daunting task. This has been one of the topmost priorities for the Finance and Admin teams as they are the caretakers of resource management. Therefore, timely asset verification and records upkeep becomes critical.It is mandatory for organizations to conduct an annual physical count of all the fixed assets to check for their depreciation, resale value, verifying the accuracy as there would be continuous addition and disposal of items regularly. Estimating the remaining utilization factor is something that is equally important to evaluate the life cycle of the particular product/ resource.
- Statutory compliance as per CARO 2020 (replaced earlier order under CARO 2016)
- Ensures the physical existence of assets
- Valuation and rectification for any accounting discrepancy
- Internal compliances of the organization
- Critical for continuous customer service
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