Practical compliance guides

Stock Audit · 6 min read

Forensic Stock Audit: How Auditors Detect Inventory Fraud and Inflated Stock Statements

When a Count Becomes an InvestigationA forensic stock audit starts from a suspicion rather than from a schedule, and that single difference...

CACA Sundaram Gupta · Aug 19

Stock Audit · 6 min read

Stock Audit for Automotive Dealerships: Vehicle Stock, Spare Parts and Demo Cars

Verifying Vehicle Stock Against Lender RecordsA floor-plan audit verifies vehicles one by one against the list the financier has funded, mat...

CACA Sundaram Gupta · Aug 19

Stock Audit · 6 min read

Stock Audit for Jewellery Businesses: Gold, Diamonds, Hallmarking and BIS Verification

What Makes a Jewellery Stock Audit DifferentJewellery inverts the usual relationship between volume and value: an entire showroom's stock ca...

CACA Sundaram Gupta · Aug 19

Stock Audit · 6 min read

Stock Audit for Pharmaceutical Companies: Batch Tracking, Expiry Dates and Cold Chain

Provisioning, Destruction and the EvidenceTwo distinct exercises get run together and should not be. Provisioning is an accounting judgement...

CACA Sundaram Gupta · Aug 19

Stock Audit · 6 min read

Stock Audit for Retail and FMCG Businesses: Perishables, Expiry and Shrinkage Control

What Counts as Normal ShrinkageThere is no single normal shrinkage figure for Indian retail, and any number quoted as one should be treated...

CACA Sundaram Gupta · Aug 19

Stock Audit · 6 min read

Stock Audit for Manufacturing Companies: Raw Materials, WIP and Finished Goods

Costing Partly Machined ComponentsWork in progress is the hardest thing on a factory floor to value, because its value is a quantity multipl...

CACA Sundaram Gupta · Aug 19

Stock Audit · 6 min read

Stock Audit Sampling Methods: How Auditors Select Items Without Counting Everything

How an Auditor Decides What to CountAn auditor counting stock selects by value, not at random, because inventory populations are almost alwa...

CACA Sundaram Gupta · Aug 19

Stock Audit · 6 min read

Slow-Moving, Dead and Obsolete Stock: Accounting Treatment and Write-Off Rules in India

When Stock Stops Being Worth Its CostStock stops being worth its cost when what you could realise from selling it, less what it costs to sel...

CACA Puja Pradhan · Aug 19

Stock Audit · 6 min read

GST Stock Reconciliation: How to Match Physical Inventory with GSTR-1 and GSTR-3B

Reconciling Physical Stock to GST ReturnsThree records describe the same movement of goods and they rarely agree: the stock on your floor, t...

CACA Sundaram Gupta · Aug 19

Stock Audit · 6 min read

Ind AS 2 vs ICDS-II: How Inventory Must Be Valued for Financial Reporting and Tax

Why Two Inventory Values Are Both CorrectThe same closing stock can legitimately carry two different values, one computed under Ind AS 2 for...

CACA Puja Pradhan · Aug 19

Stock Audit · 6 min read

CARO 2020 and Inventory: What Statutory Auditors Must Verify and Report

What CARO 2020 Says About InventoryInventory is dealt with in clause 3(ii) of CARO 2020, and it has two limbs that are routinely confused wi...

CACA Puja Pradhan · Aug 19

Stock Audit · 6 min read

Common Deficiencies Found in Bank Stock Audits and How Businesses Can Fix Them

The Findings That Recur Most OftenThe same small set of deficiencies turns up in bank stock audits across industries, and the great majority...

CACA Puja Pradhan · Aug 19