Stores lying in the store on a given date are known as stock. Thus, stores and stock convey the same meanings in every sense of the term. Stock audit refers to the physical verification of stock based on the maintained records. Thus, the audit used for a company's stock involves verifying and detecting discrepancies (if any), finding deviations, and reporting accordingly. Stock audit and stock verification are two terms that convey the same meanings. As such, in most accounting dictionaries, the two terms are used interchangeably.
Stock Audit FAQs
The process of inspecting records related to store transactions, products sold, and related customer information for detecting any discrepancies (if any) is known as stock auditing. It involves verifying stock based on the company’s billing documents. The term also implies that there has been an internal or external investigation into the financial transactions carried out by the company.
Stock verification means checking and verifying (if any) discrepancies related to products kept in store, sales information, etc. It involves finding deviations between what was actually sold/transacted and what was recorded. The result of stock verification may or may not reveal the existence of frauds.
Stock auditing refers to a more detailed process that includes physical verification of products kept in store, sales records, etc. It can be carried out by an internal auditor or an external vendor (including employees). However, stock verification needs to be carried out by an independent and impartial person. Also, in case of stock verification, the process also includes checking if there are any discrepancies related to billing documents, etc.
Stock audit refers to the detailed inspection of records related to store transactions, products sold, customers’ information for detecting any discrepancies (if any). It can be carried out by an internal auditor or an external vendor. In contrast, inventory count refers to a simple checking of physical stock provided by a company’s employees.
Inventory count means calculating the total number of products in store by consulting the physical records provided by a company’s employees. On the other hand, stock verification refers to an in-depth investigation into products kept in store and sales data for detecting any discrepancies (if any). It can be carried out by an internal auditor or an external vendor (including employees).
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.
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