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    Gold Audit/ Gold Inspection Lms

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    Raghu.G
    The document discusses stock audits performed by Manappuram Jewellery Ltd's Internal Audit department. It defines a stock audit as a physical verification of a company's inventory assets. Key reasons for stock audits are to identify discrepancies between physical and recorded stock, update stock records, and ensure proper stock handling. Benefits include reducing costs and fraud, assessing accurate inventory value, and improving inventory management. The document outlines steps to perform stock audits, including cut-off analysis, physical counting, reconciling discrepancies, and analyzing high-value, in-transit, and finished goods. It emphasizes understanding inventory levels helps brands remain visible to customers.

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    © All Rights Reserved
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    Gold Audit/ Gold Inspection Lms

    Uploaded by

    Raghu.G
    1K views16 pages
    The document discusses stock audits performed by Manappuram Jewellery Ltd's Internal Audit department. It defines a stock audit as a physical verification of a company's inventory assets. Key reasons for stock audits are to identify discrepancies between physical and recorded stock, update stock records, and ensure proper stock handling. Benefits include reducing costs and fraud, assessing accurate inventory value, and improving inventory management. The document outlines steps to perform stock audits, including cut-off analysis, physical counting, reconciling discrepancies, and analyzing high-value, in-transit, and finished goods. It emphasizes understanding inventory levels helps brands remain visible to customers.

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    Gold Audit / Gold Jewellery Inspection

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    Gold Audit/ Gold Inspection lms

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    The document discusses stock audits performed by Manappuram Jewellery Ltd's Internal Audit department. It defines a stock audit as a physical verification of a company's inventory assets. Key reasons for stock audits are to identify discrepancies between physical and recorded stock, update stock records, and ensure proper stock handling. Benefits include reducing costs and fraud, assessing accurate inventory value, and improving inventory management. The document outlines steps to perform stock audits, including cut-off analysis, physical counting, reconciling discrepancies, and analyzing high-value, in-transit, and finished goods. It emphasizes understanding inventory levels helps brands remain visible to customers.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    1K views16 pages

    Gold Audit/ Gold Inspection Lms

    Uploaded by

    Raghu.G
    The document discusses stock audits performed by Manappuram Jewellery Ltd's Internal Audit department. It defines a stock audit as a physical verification of a company's inventory assets. Key reasons for stock audits are to identify discrepancies between physical and recorded stock, update stock records, and ensure proper stock handling. Benefits include reducing costs and fraud, assessing accurate inventory value, and improving inventory management. The document outlines steps to perform stock audits, including cut-off analysis, physical counting, reconciling discrepancies, and analyzing high-value, in-transit, and finished goods. It emphasizes understanding inventory levels helps brands remain visible to customers.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 16

    MANAPPURAM JEWELLERY LTD

    INTERNAL AUDIT DEPT


    LEARNING MANAGEMENT SYSTEM
    By Raghu G
    91-9847715645
    MANAPPURAM JEWELLERY LTD
    INTERNAL AUDIT
    LMS MODULE -4

    STOCK AUDIT
    MEANING OF STOCK AUDIT

    Stock audit or inventory audit is a term that


    refers to physical verification of a company or
    Institution's inventory assets.

    Every business organization needs to perform


    an audit once a year to update and ensure that
    the physical stock and the computed  stock 
    match.
    Why is a stock audit important?

    • There are several key reasons why an institution


    needs to perform a stock audit, including:
    • Identify the slow-moving stock, deadstock,
    obsolete stock, and scrap
    • Find out discrepancies between book stocks and
    physical stock
    • Update the physical stock that matches book stock
    • Make sure the proper preservation and handling of
    stocks
    BENEFITS OF STOCK AUDITS

    Stock audits is also an important factor in determining the benefits


    that should be offered to institutions.

    These are the key benefits of stock audits:

    - To reduce cost and bottom-line


    - To prevent pilferage and fraud
    - Assess the information of the accurate inventory value
    - To reduce gaps in the inventory management process
    - As special arrangements for third party opinion, suchas
    submitting stock verification to Statutory Audit, Banks and
    other Creditors.
    - As a good control mechanism in running the business
    How To Perform STOCK AUDIT

    • Cut-off Analysis
    • Physical inventory counting
    • Inventory layers
    • High-value item inventory analysis
    • Inventory-in-transit analysis
    • Carrying cost /Making charge cost analysis
    • Finished-goods cost analysis
    • Reconciling items investigation
     
    • High-value item inventory analysis – another term used for ABC Analysis that refers to the grouping of A
    products, mid-tier are B, and low-value is C. It is time-saving and helps to better manage a stockroom.
    Inventory-in-transit analysis – an analysis to track the time between the date of shipment and the date of
    receipt when materials are moving between two locations or more. This audit helps to make sure that all the
    items are not lost and safe while in transit
    Freight cost analysis – a process to determine shipping costs and the costs to get products from one place to
    another
    Finished-goods cost analysis – the inventory which you have completed and are ready to sell is known as
    finished goods. An auditor then analyzes the value of the inventory for the current accounting period 
    • Reconciling items investigation – an important process that is taken when discrepancies are found between
    the inventory counts and the actual amounts in the warehouses. The auditor examines whether or not there
    are unmatched amounts and then makes adjustments to the record.
    • To conclude, It is imperative to understand where you stand in terms of inventory/stock so that your brand is
    never out of your target audiences’ sight.
    • FloorWalk, is one of the leading mystery shopping companies in India, with over 25k plus freelance auditors.
    Stock audits are one of the services which FloorWalk provides PAN India. We help clients gauge everything
    from consumer experience to process compliance on the ground level. To know more about what we do and
    how we do it, click on the button below.
    How to perform stock audits
    Cut-off Analysis

    Cut-off Analysis – the process where an auditor(s)


    examine the company’s procedures. This involves ,
    fixing the cut –off date, generation of inventory
    report as on Cut off date, Scrutiny of last inward
    and outward stock before conducting the physical
    count and transactions that follow it. This makes
    sure that they are fully accounted for.
    Physical inventory counting – the process of counting every piece of inventory assets
    to account for them all. An auditor usually uses technology like a bar code scanner to
    physically count each item.

    Inventory layers – a process taken if the company does inventory using FIFO (first-in,
    first-out) or LIFO (last-in, first-out) to make sure that the recorded inventory is valid

    High-value item inventory analysis – another term used for ABC Analysis that refers
    to the grouping of A products, mid-tier are B, and low-value is C. It is time-saving
    and helps to better manage a stockroom.
    VERIFICATION OF GST
    RETURNS & RECORDS
    • Verification of the Purchase ledger
    • Verification of the sale ledger
    • Verification of records on Job work
    • Verification of purchase returns
    • Verification of sales returns
    ASSESSMENT

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