Stock audit or inventory audit is a term that refers to physical verification of a company or institution’s inventory assets. Every business organization needs to perform an audit once a year to update and ensure that the physical stock and the computed stock match.

Stock audit or inventory audit is an accounting process which is performed to calculate acompany’s total stock of physical goods/raw materials. … The stock audit helps to keep a track of the amount of physical assets remaining and make necessary arrangements to order new stock.

“Stock Audit should be conducted by appointing Chartered Accountants, who are in our panel as Stock Auditors, for Working Capital Limits of ₹ 3.00 Crore & above (both Fund based and Non Fund based Limits) where the primary security is hypothecation of Stock and/or Book Debts once in a year”