Stock audit ensures accurate recording of business activities by verifying stock data and its usage. Stock audit, also known as inventory verification, needs proper planning, resources, and expertise. The stock audit services from Reve Consult help in monitoring, protecting, and supervising your stock. The purpose of stock auditing is to ascertain the accuracy, presence, and ownership rights of items in the company’s inventory, ensuring proper valuation. Our stock auditors verify your inventory and offer precise and resonant insight into your stocks.
Physical Verification of Inventory
Physical verification of inventory involves an exhaustive process of physically verifying the condition and quality of all stock items. The stock is weighed, counted, and measured to ensure accuracy and reconciliation with financial records. This process verifies actual stock against the stock records to identify discrepancies, misinformation, frauds, or losses. The stock auditor at Reve Consult conducts on-site inspections, calculates inventories, and reconciles records for accuracy.
Documentation Review
Audit documentation is the main record of auditing procedures planned, tasks performed, evidence obtained, and conclusions derived by the auditor. It is the work papers that examine purchase records, stock registers, and invoices. The stock auditor at Reve Consult verifies documentation integrity and identifies existing gaps.
Valuation Review
Stock valuation is conducted by a company to determine the worth of its stock relative to its share price. The stock auditor evaluates stock value based on market price, condition, and depreciation. The stock price can vary depending on demand and various market forces. The stock auditor at Reve Consult computes the price-to-earnings ratio (P/E) to acquire the true stock value. We ensure prompt financial reporting, tax compliance, and profitability analysis.
Reporting
The stock audit report is a formal record that contains inventory verification, documentation review, valuation, and audit findings. In stock audit reporting, the auditor summarises the audit findings, highlights discrepancies and inefficiencies, and provides corrective measures. In KSA, companies must submit their stock audit reports to ZATCA and MOC, for corporate governance and to their internal stakeholders for financial transparency.
In the Kingdom of Saudi Arabia (KSA), companies are required to submit stock audit reports to both the Zakat, Tax and Customs Authority (ZATCA) and the Ministry of Commerce (MOC). This is done to ensure corporate governance and to provide financial transparency for internal stakeholders.
