Stock Audit and Inventory Valuation

CN Trust Consultants Ltd offers a service for inventory audit and stock management by complying with the accounting principles. Inventory management we organize and manage stock throughout the supply chain. The goal of inventory management is to minimize the cost of holding inventory, while keeping stock levels consistent and getting products into customers hands, faster. It's the heart of a successful retail business. 

We carry out the physical verification of the inventory, Inventory audits check in order to ensure that financial records match a company's inventory records and physical inventory count. Audits confirm not only the quantity of inventory but also its quality and condition.

Principal activities that are to be performed in asset management are as follow:

  • To record opening balances of existing fixed assets in the asset register.
  • To update the asset register for additions in the month of purchase.
  • To update the asset register for disposals in the month of disposal.
  • To extract a list of opening asset values posted to the manually fixed asset register and check that the totals agree with the initial listings.
  • To report and file on monthly basis the status of assets in the fixed asset register.
  • To carry out an annual physical inventory of fixed assets.
  • To reconcile the fixed asset register with the results of the physical inventory. Any unexplained difference is communicated to the company’s management that takes appropriate action. In any case of damage or obsolete, we decide to dispose of the assets at cost.

To have an effectively fixed asset register, the following steps should be followed:

  • To prepare a listing of fixed assets purchased by the company during the year;
  • To verify the existence of each item on the lists above by performing a physical inventory count;
  • To assess the condition of the assets and their location;
  • To assign asset tag numbers or a suitable reference number to each asset;

The fixed asset register should be updated as follows:

  • To perform an annual physical inventory count to confirm the existence and condition of the fixed assets.
  • To record any fixed asset additions.
  • To record any fixed asset disposals.
  • To remove fully obsolete assets from the fixed asset register.