CHECK LIST FOR STOCK TAKE

Name of the Client
Location
Karvy’s Representatives Present
Client’s Representatives Present
Date Of Stock Take
Start Time:
End Time
  1. Answer the following Questions in YES or NO :

STOCK TAKE
A / AUDIT OBJECTIVES/RISK CONTROL ASSESSMENT:
B / CONTROL ACTIVITY/AUDIT STEP / YES/NO/NA / GAPS IDENTIFIED/AUDIT COMMENTS & RECOMMENDATIONS
Have the personnel been given proper instructions about maintenance of stock?
Were the issues and receipts of stock suspended during the stock take?
Is the client maintaining a stock register?
Is the stock register updated properly by proper personnel?
Is the stock segregated properly on some basis (Value/Usage Rate/ Description/ Nature) ?
Were inventory items arranged in an orderly manner prior to the inventory to facilitate the counting?
Have the Client’s personnel helped for counting the stock?
Was the stage of work-in-process determined and recorded properly?
Are there any
- Defective goods :
- Spoiled goods :
- Slow moving items :
- Obsolete
If yes, were they properly segregated?
Is there a proper tag describing the stock?
Is there bin card showing the balance quantity
Are the Material requisitions raised and authorized properly?
Is the stock verified for its quality before entering the stores?
Has the stock been verified previously by the client? If yes, are there any material discrepancies?
Have the cut-off procedures been performed?
Has 100 percent stock been verified? If no, has ABC analysis been followed? Or explain if any other procedure is followed
Is there any stock of third parties lying in the stores?
If yes, has it been properly segregated?
Are there adequate internal controls? Have they been verified on a test check basis?
Are there any material discrepancies found according to the stock take?
Is the receipt store and main store separated?

II. Answer the following after discussion with the client :

1.General Description of Inventory (Mention Yes or No) :

-Raw Materials :

-WIP :

-Finished Goods :

-Spares, Stores Etc., :

-Goods billed not shipped :

-Goods received not billed :

-Inventory in Third party’s custody :

-Third party’s stock in the client’s stores :

-Consignment Stock :

-Any others :

2. Is there any re-order levelmaintained? If Yes, has it been verified? If No, why so?

3. What is the value of

- Defective goods :

- Spoiled goods :

- Slow moving goods :

- Obsolete :

- Others :

4. How often is the stock verified by the client’s personnel?

5. What is the method of valuation of inventory followed?

III. Detail out the purchase procedure of the stores department and the verifications done

IV. Detail out the issue procedure of the stores department and the verification done

V. Describe the Internal Controls briefly.

VI. List down any other observationsif anymade during the stock-take (If any)

VII. Summarize the MAJOR issues noted during the stock take (if any) :