Scope of a stock audit
- Physical verification of stock on a sample or full basis
- Valuation against cost and market value, and identification of slow-moving or obsolete stock
- Debtor ageing and verification of receivables
- Comparison with the stock statement submitted to the bank
- Drawing power calculation under the sanction terms
- Insurance, storage and hypothecation board checks
For borrowers
A clean stock audit depends on accurate stock statements every month. We help borrowers keep stock records, prepare monthly stock and debtor statements, and understand the drawing power that the bank will allow. See loan services.
Frequently asked questions
How often is a stock audit done?
As set by the bank, usually once a year for larger limits.
Who appoints the stock auditor?
For bank stock audits, the bank appoints the auditor from its panel. Businesses can appoint us for internal stock audits.
What happens if there is a shortfall?
The bank may reduce drawing power or ask for additional margin. Early review helps avoid surprises.
This page gives general information about Agar & Co. and its services. It is not an advertisement or solicitation, and it should not be treated as professional advice. Rates, thresholds and due dates change from time to time.