In general, a Stock audit means physical verification of the inventory/stock. It can involve the valuation of the stock as well, but it usually depends on the scope and terms of the term of the engagement letter of the assignment. When heading forward, it is very crucial to keep in consideration the sole purpose for which the audit is being conducted because the different audits may have a different approach which would ultimately depend on the ultimate objective of the organisation.
In other words, a stock audit is a statutory process that every company/business should get performed at least once in a particular financial year. As far as the stock audit procedure is concerned, the stock audit process in India involves physical counting of different inventories and presenting the premises and verifying the same with computed inventory maintained by the company. The reason and purpose behind executing this are to correct the discrepancies present in the book stock when compared to physical stock bypassing necessary adjustment entries. Manish Anil Gupta & Co. is among the best stock auditors in India, providing independent audit services.