Practice Brief • Audit & Assurance Services
Stock Audit & Warehouse Audit Services
Physical inventory verification, warehouse audits, and bank drawing power certifications.
Turnaround: 2 to 5 business days per location
Practice Lead: CA. R.A. Dhoot & Stock Audit Desk
Practice Methodology & Regulatory Scope
Stock and warehouse audits protect financial institutions and promoters from phantom inventory, pilferage, obsolescence, and over-stated drawing power. We conduct surprise physical counts, evaluate storage controls, and certify real drawing power for working capital lenders.
Governing Statutory Acts & Guidelines
Standards on Auditing (SA 501)
RBI Master Circulars on Working Capital Finance
ICAI Guidance on Inventory Audit
Tangible Client Deliverables
1
Physical Stock Verification Report with variance and reconciliation schedules2
Drawing Power (DP) Calculation & Certification for Working Capital / Cash Credit limits3
Aging analysis, slow-moving, non-moving, and obsolete inventory identification4
Warehouse security, material movement SOP, and fire safety verification5
Stock discrepancy reconciliation with financial ledgers and GST purchase registersMeasurable Enterprise Safeguards
Prevention of bank penal interest and margin call demands
Detection of inventory leakages and pilferage in supply chain operations
Accurate valuation for financial reporting and insurance coverage
Statutory Practice FAQs
Q: Why do banks mandate third-party stock audits for CC limits?
A: Banks require annual or bi-annual stock audits by independent Chartered Accountants for cash credit borrowers (typically limits above ₹1 to ₹5 Crores) to verify that hypothecated stock and debtors genuinely exist to secure the bank's exposure.
Partner Consultation
Engage Practice Partner
Schedule an in-person chambers discussion or encrypted virtual conference with our senior practice leader.
Designated Partner Lead:
CA. R.A. Dhoot & Stock Audit Desk
ICAI Fellow Chartered Accountant
Strict client confidentiality maintained under ICAI Code of Ethics.