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.