Stock & Receivables Audits & Physical Verification of Stock
Stock or Inventory means the asset
- which are held for sale in the ordinary course of business;
- In the process of production for such sale; or
- In the form of material or supplies to be consumed in the production of goods or services for sale
These goods are normally stored in the godowns, which are generally located near the factory or some time in the factory itself.
Stock Audit is an independent check on the functions of the management, which has some value in the eyes of law and the taxation authority. Audit refers to thorough check of the entire system so that it facilitates Prevention and early Detection of frauds.
Stock audit is of great interest and importance to two sets of people in an organization – the Financial Controller and the Planning Manager. While the Financial Controller is concerned about the accuracy of the stock value, the Planning Manager is concerned about the accuracy of the stock quantity.
Stock & Receivables Audit is one of the most important aspect of the overall exercise of audit of any organization. In stock and receivable audit, auditor ensures himself about the quantity, quality, composition and actual value of the stock & the debtors.
Need for Stock Audit:
The simple reason for audit and physical verification of the stock and securities is that it acts as a safeguard against occurrence of both, the Internal and External Frauds. The other reasons are:
- To find out whether there is a sufficient and suitable environment for preservation of the stock & securities.
- To find out whether the stocks & securities are safeguarded against theft or misuse by any person at any time.
- To find out whether the stocks and securities can get degraded
Stock Audits are usually performed by the professionally qualified and competent person or Internal Auditor or External Auditor can also be appointed to conduct audit on monthly or quarterly or half-yearly basis.
Applicability of TDS U/s 194Q and TCS U/s 206C(1H) of Income Tax ActJune 8, 2021
Special provision for Deduction of Tax at Source (TDS) & Tax Collection at Source (TCS) at Higher Rate for non-filers of Income Tax Return – Section 206AB & Section 206CCA
Analysis of GST Notifications issued on date 01st June 2021June 2, 2021
Income Tax Circular No. 9/2021 : Extension of time limits of certain compliances to provide relief to taxpayers in view of the severe pandemic
Applicability of E-Invoicing under GST w.e.f. 01st April, 2021March 16, 2021