Sunday, March 16, 2008

#35 Stock Take in Audit Procedure

Purpose of stock take is to verify the existence of the inventory accounted by the company. Procedures in stock take:

1. Obtain stock listing as at balance sheet date from client.
2. Randomly select certain number of samples from stock listing to physically count the inventory to check that the inventory listing ( as prepared by client) has no material difference.
3. Randomly select certain number of samples from the floor ( and test count the number of the items) to check that the stock listing is complete.
4. Make any adjustment if necessary.


Anonymous said...

"For stock-take test count samples - select from the floor and from the list."
If company YE 31.12.08 and stock-take was conducted on the 12.01.09.
Is our stock count agree to stock listing as at 31.12.08 or 12.01.09?
Also, is it necessary ask for 12.01.09 stock listing from client?


Kauditor said...

Hi Gooday,

This is Kauditor from 'Accounting & Auditing Blog'.

If the stocktake is conducted on 12.01.09, then the audit should agree the stock count result to stock listing as at 12.01.09.

Then, the stock listing as at 12.01.09 should be roll-backward to 31.12.08, as the Company year-end is on 31.12.08.

Hope this help. Besides, should you need further knowledge. Plz feel free to drop us an email at

Anonymous said...

Hi! How do u do stock take in a refinery?