Inventory Audit
Inventory Audit
Stock Audit is an Audit of Inventory in which a thorough search is conducted of the contents of inventory such as its age, suitability, movement, purchase price, market price, direct and indirect cost allocation and its fair valuation. Inventory audits are mainly conducted for banks and financial institutions who have lent to corporate clients against the security of stocks.
The entities that operate with huge stocks and from different stock locations also seek inventory audits at periodical intervals to evaluate the physical availability, valuation and also to verify that the item given to the bank or to the lenders are marketable and not obsolete and slow moving. These audit services are also part of the due diligence process normally performed in a merger opted many a time as an independent third party assessment by the corporate clients and their listed companies.