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What is a Stock Audit?
A stock audit is an important auditing process that primarily involves the physical verification of inventory. Occasionally, it may also include the valuation of the inventory, depending on the terms of reference or the engagement letter of the assignment. The approach to a stock audit can vary based on its purpose, making it essential to understand the specific objectives of each audit.
In essence, a stock audit is a statutory process that every business must perform at least once in a financial year. The primary steps of a stock audit include counting the physical stock at specified premises and verifying it against the computed stock maintained by the company. The goal is to identify and correct discrepancies between the book stock and physical stock by making necessary adjustment entries.
Reasons for Conducting a Stock Audit
- To update the opening stock details in software systems.
- To identify discrepancies between book stock (computed stock) and physical stock.
- To update the actual physical stock to match the book stock.
- To ensure proper preservation and handling of stocks.
Stock Audit Procedure and Services in Vietnam
The stock audit procedure and services in Vietnam follow standard practices. Our highly experienced and well-trained stock audit professionals not only deliver quality results but also provide valuable suggestions for controlling stock costs. Conducting a stock audit offers several key benefits, including:
- Direct impact on costs and the bottom line.
- Prevention of pilferage and fraud.
- Identification of slow-moving stock, obsolete stock, dead stock, and scrap.
- Provision of an independent third-party opinion, especially for agent warehouses.
- Identification of gaps in the current inventory management process.
- Enabling accurate valuation of inventory.
We offer reliable stock audit services to companies and organizations, aiming to help them safeguard and monitor their physical assets and inventories.
Please feel free to contact us. We will be more than happy to help.
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