Inventory is often one of the most sensitive balances in the financial statements, particularly for trading, retail, manufacturing, distribution and project-based businesses. Errors in stock counts, cut-off, valuation or record keeping can have a direct impact on profit, working capital and the credibility of reporting. RAA’s inventory audit service is designed to provide independent oversight over the quantity, condition, ownership and reporting of inventory.
We support clients through year-end stock counts, cyclical count programmes and targeted inventory reviews. Our work may include attendance at physical counts, count test-checking, observation of count controls, reconciliation of physical quantities to records, review of slow-moving or obsolete stock and assessment of inventory-related controls. We also highlight process weaknesses that contribute to shrinkage, recording errors or valuation issues.
