Inventory Stock Audit Services
Independent physical count, books-to-stock reconciliation and variance reporting for manufacturers, retailers, distributors and warehouse operators — conducted by our Mumbai-based CA team with trained count staff and digital documentation.
An inventory stock audit is the physical verification of your goods — raw materials, work-in-progress and finished goods — at your premises, followed by reconciliation with your ERP or books, investigation of variances, and a signed audit certificate. Banks require it under CC/OD stock-hypothecation covenants; insurers require it before policy renewal; and statutory auditors require it to satisfy CARO 2020 inventory verification requirements. The Classic Partners LLP manages the full cycle — planning, independent count supervision, cut-off verification, variance analysis and final reporting.
An independent count your lender, insurer and auditor will accept
When a bank sanctions a CC limit against stock, it needs assurance that the stock it is financing actually exists and is correctly valued. When a statutory auditor ticks the inventory box in CARO 2020, they need documented evidence of physical verification. And when a CFO suspects shrinkage or slow-moving build-up, they need a clean count and a variance drill-down.
We bring independent count teams, structured count sheets, photographic evidence, cut-off document review and a final reconciliation report — not just a headcount but a fully documented audit trail from counting floor to signed certificate.
- Independent count teams — not your own warehouse staff
- Blind count methodology to eliminate guided or coached counting
- Physical vs ERP / Tally reconciliation with variance analysis
- Cut-off verification — pending GRNs, goods in transit, inter-branch transfers
- Valuation check — NRV test, slow-moving and obsolete stock identification
- Signed stock audit certificate acceptable to PSU and private banks
Applicability — when a stock audit is required or strongly recommended
Lender covenants, statutory requirements and internal risk triggers that make an inventory stock audit necessary.
| Trigger | Requirement | Recommended frequency |
|---|---|---|
| Bank CC / OD against stock | RBI / lender covenant — physical verification by empanelled CA; stock statement reconciliation | Quarterly or as per sanction terms |
| Statutory audit (CARO 2020) | Auditor must report whether inventories were physically verified at reasonable intervals and whether discrepancies were material | Annual (minimum) |
| Insurance policy renewal | Insurer pre-assessment of stock value for fire, theft and transit policies | Annual / on renewal |
| Multi-location retail / FMCG / pharma | Shrinkage control, pilferage detection, slow-moving identification across branches | Periodic / cyclical count |
| Listed companies & large unlisted | Internal control requirement — inventory accuracy as part of IFC framework | Quarterly or half-yearly |
| Business sale / due diligence | Clean stock count required for completion accounts and net working capital adjustment | Pre-transaction |
Not sure whether your sanction letter requires a quarterly or annual stock audit? Share your sanction terms — we'll confirm the scope in one call.
What our inventory stock audit covers
Every engagement is scoped to your locations, ERP system and lender / auditor requirements.
Physical Stock Count
Trained count teams conduct a blind count of all stock items — raw material, WIP and finished goods — using structured count sheets with sequential tags and supervisor sign-off.
Books vs Physical Reconciliation
Count data matched line-by-line to your ERP or Tally ledger. Variances are categorised by value, volume and root cause — process gap, pilferage, damage or data entry error.
Cut-Off Verification
Review of pending GRNs, goods-in-transit, return challans and inter-branch transfers at the count date — ensuring the stock figure is neither overstated nor understated at cut-off.
Valuation & Slow-Moving Analysis
NRV check on finished goods and traded items; ageing analysis of raw material and WIP; identification of obsolete, damaged and non-moving stock requiring write-down.
CARO 2020 Compliance
Count documentation structured to satisfy the auditor's CARO 2020 inventory verification requirement — discrepancy statement, materiality assessment and management's response included.
Management Report & Certificate
Signed stock audit certificate for banks and insurers; management report with gap root causes, shrinkage rate, slow-moving value and prioritised corrective actions.
Our four-stage stock audit process
Structured to minimise disruption to warehouse operations while producing a fully defensible audit trail.
Planning & scheduling
Agree count date, location list and access; request ERP stock extract; brief count teams on methodology; communicate count freeze to your warehouse team.
Physical count supervision
Independent blind count with sequential tags; photo documentation of every bay or rack zone; discrepancy tagging; supervisory review before count sheets are sealed.
Reconciliation & cut-off
Count sheets entered and matched to ERP ledger; variance investigated and classified; cut-off documents reviewed to finalise the certified stock figure.
Report & certificate
Signed stock audit certificate issued; management report with variance analysis, slow-moving schedule and recommendations delivered within the agreed SLA.
A stock audit your bank's credit team will not question
CA-signed, independently conducted and formatted for lender and statutory audit requirements.
Truly independent count teams
Our count staff are not your warehouse employees — blind counting eliminates coached or guided stock figures.
Bank-accepted certificates
Report format and CA signature accepted by SBI, HDFC, Axis, ICICI and most co-operative and NBFC lenders.
Digital, timestamped documentation
Photo evidence, GPS-tagged locations and cloud-stored count sheets — a complete audit trail if the lender or auditor queries the count.
ERP-agnostic
We work with Tally, SAP, Zoho Inventory, Oracle, Microsoft Dynamics and custom ERP exports — no re-keying, no format friction.
Multi-location coverage
Single engagement can cover multiple warehouses, factory stores and branch locations across Maharashtra and pan-India.
Feeds directly into statutory audit
When we are also your statutory auditor, the stock count feeds directly into the audit file — no duplication of effort or conflicting figures.
Stock audit questions business owners and CFOs ask us
Straight answers before you engage an audit firm.
Ready to schedule your inventory stock audit?
Tell us your industry, number of locations, approximate SKU count and whether the audit is for a bank, insurer or statutory audit requirement. You'll get a fixed quote within one working day.
