Stock Audit (Inventory Audit) is an exercise where there is verification of stock held by the entity, and it gets reconciled with the books of accounts. The Stock Audits done in 2026 will involve verification of the quality of the stock, identification of "Slow-moving" or "Obsolete" stock and ensure that the valuation of stock is made in compliance with Ind AS 2 or AS 2.
Here at Ruchi Anand & Associates, we appreciate the fact that for most manufacturers or retailers, their largest asset account in the balance sheet will be the inventory account. In particular, banks and financiers need our reports of stock audits as assurance that the "Security" on which they have given the working capital loan is indeed available and its valuation is correct.
In the complex supply chains of 2026, stock is often spread across multiple e-commerce fulfillment centers, third-party logistics (3PL) providers, and "Dark Stores." Our audit methodology has evolved to track inventory through every node of the supply chain. We don't just look at what is on the shelf; we analyze the velocity of inventory. By integrating with your WMS (Warehouse Management System), we provide a layer of digital verification that complements our physical presence, ensuring that "phantom inventory" (stock that exists in the books but not in reality) is eliminated.
While regular internal teams might perform monthly counts, a professional audit by Ruchi Anand & Associates is required for:
Our specialized stock audit team performs a "Wall-to-Wall" verification including:
Physical verification of raw material, work in progress (WIP), and finished goods in full or sample basis.
Reconciliation between physical verification and the value of stock reflected in SAP, Oracle, or Tally. Any discrepancies are investigated under "Mismatches."
Classifying stocks into fast, slow, and non-movables. It aids management in determining whether to have clearance sales or write-offs.
Confirming if the cost or net realizable value (NRV) method is followed.
Assessing the condition of the storage facility in terms of fire safety, moisture levels, and the first-in-first-out (FIFO) system of movement of goods.
Document audit of stocks in transit from the supplier to the warehouse.
Auditing the process of how production waste is measured and sold, ensuring no leakage of value through unrecorded scrap sales.
To conduct an efficient and accurate verification, the following records must be provided:
Yes. A Statutory Audit is a broad review of the entire Balance Sheet. A Stock Audit is a specialized, deep-dive exercise focused specifically on the physical and financial integrity of the inventory.
We use scientific methods including "Dip Tape" measurements for tanks, volume-to-weight conversions, and specialized weighing scales to ensure accuracy within acceptable tolerance limits.
It usually means a sale was recorded before the purchase was entered. This is a red flag. We help you clean up your process to prevent such logical errors in the ERP.
Yes. At Ruchi Anand & Associates, we have the capability to deploy teams simultaneously across different cities to ensure a "snapshot" of the entire group's stock is taken at the same moment.
Ageing tracks how long an item has been in your warehouse. Stock older than 180 or 365 days often indicates obsolescence. Identifying this early allows you to liquidate it before its value drops to zero.
Yes. We assess the stage of completion for WIP items and verify that the costs of labor and overheads have been correctly allocated to their value as per accounting standards.
We verify the "Job Work" registers. Stock belonging to others is physically counted but kept separate from the entity’s own assets to ensure no inflation of the balance sheet.
It is a procedure to ensure that transactions are recorded in the correct accounting period. We check that goods received just before the audit are included in stock, and goods sold just after are excluded.
Yes. If the audit reveals that the "Drawing Power" (DP) is lower than reported—due to slow-moving or missing stock—the bank may reduce the credit limit to match the actual security available.
A box count alone does not suffice in 2026. At Ruchi Anand & Associates, we provide you with "Operational Intelligence." Our team employs handheld scanners and electronic reconciliation systems to guarantee that your report is always 100% accurate and up to date.
Our report will provide you with an "Executive Summary of Discrepancies" along with some recommendations to enhance your warehouse security and inventory turnover. It's not about finding out what went wrong but the "Why" behind it. At Ruchi Anand & Associates, your inventory will turn into a well-oiled machine for growth. We ensure that your stock is not just an asset on paper, but a high-velocity driver of your company's cash flow.
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