Audit & Attestation
Inventory Audit
Verification of physical inventory, valuation and stock records.
Overview
Inventory audit covers the physical verification of stock, the reconciliation of physical quantities with book records, and the examination of inventory valuation under the applicable financial reporting framework.
Engagements are performed in accordance with the Standards on Auditing issued by the ICAI, including those dealing with audit evidence for inventory.
Scope & areas covered
- Physical verification of stock and stock-in-transit
- Reconciliation of physical counts with book records
- Examination of valuation basis and cost formulae
- Review of slow-moving, obsolete and damaged inventory
Related professional topics
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Professional notes and publications related to this service area.
