Stock Audit is the process of physically verifying the inventory of a business to ensure that the actual stock matches the recorded stock in the books or system. It helps identify discrepancies, losses, damages, pilferage, or mismanagement in inventory.
✅ Key Objectives of Stock Audit:
- Verify accuracy of stock records
- Identify slow-moving, expired, or obsolete items
- Prevent fraud or theft
- Ensure proper inventory valuation
- Improve inventory control and management
📦 Common Areas Checked:
- Stock count (physical vs system)
- Stock storage conditions
- Item categorization & labeling
- Purchase & sales documentation
- Expiry dates (for perishable goods)
🔄 When Is It Done?
- Periodically (monthly, quarterly, or annually)
- During financial audits
- Before major events like mergers, shutdowns, or stock transfers
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