Inventory audit also referred to as stock audit, refers to an accounting process that takes into account a company’s total stock of physical goods. This is especially needed in manufacturing companies where raw materials need to be converted to finished goods and is a quintessential process of maintaining a healthy business and for it to succeed. An Inventory audit is considered mandatory for keeping account of the quantity and quality of raw materials remaining in stock. This is because anything more than 70% of product cost involves material cost. Additionally, an inventory audit is absolutely necessary for organizations with multiple branches as they tend to have a massive stock of physical goods. Audit of essential physical inventories is generally conducted at or near the end of the year. IMPORTANCE OF INVENTORY/STOCK AUDIT AND WHY BUSINESS NEED IT Inventory tends to be the easiest assets to manipulate and hence it’s essential to keep a constant vigil over ...