A Tax Residency Certificate is a certificate issued by the Income Tax Department. to the India...
An Inventory Audit is a process of accounting the Inventory level of a company. It maintains the record of stock stored by the company while keeping track of the company’s current supply. Companies claim inventory as an asset and claim valuation for it every year. For claiming valuation on stock Inventory audit is very beneficial.
The purpose of the audit is to get accurate information about the inventory and to avoid stock-outs. This process should be carried out at different levels of productions, so that correct information about the stock at a different level can be judged. Inventory Audit can be done as frequently as a business wants to keep an accurate track on its inventory. If the transaction is huge or the quantity is huge, it is advisable to do the audit on every month. Whereas in other cases, an audit can be conducted quarterly basis or couple of month after depending on the size of the business.
Various IT companies have introduced their software for proper maintenance of data for audit. With a push-button, the Inventory audit process can be started. Warehouse workers doing physical inventory count got relief through such automation. Because of automation the accuracy and speed of the entire operation have increased.
The Auditor of the company needs to maintain all records and documents for the Inventory Audit. He needs to upgrade and keep track of every transaction of the production and sales process. A proper system is followed with minimal wastage of raw material in the production process until it is converted into finished goods.
Following are the questionnaire which helps to get accurate and complete information about the stock in the company. It also helps to take appropriate steps if there is any downfall in stock.