How to do stock audit?

Question

Accepted Answer

Stock audit involves verifying and validating the physical existence and accuracy of stock holdings.

Conduct a physical count of stock items to ensure they match the recorded quantities.
Compare the physical count with the stock records to identify any discrepancies.
Inspect the condition and quality of the stock items.
Review the stock valuation methods and ensure they are applied correctly.
Check for proper documentation and record-keeping of stock transactions.
Perform random sampling to ensure the accuracy of the stock count.
Reconcile any discrepancies found and investigate the root causes.
Generate audit reports with findings and recommendations for improvement.

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