Stock Verification Procedure

Written by True Tamplin, BSc, CEPF®

Reviewed by Subject Matter Experts

Updated on March 06, 2023

The standard procedure for stock verification is as follows:

1. Prepare a program of verification.

2. Receive approval from the appropriate authority.

3. Appoint the verification team.

Note: In continuous stock verification, the staff is permanent and, in fact, under this method, there is no appointment of the verification team. However, under annual stock verification, the following staff are appointed to the verification team:

  • Technical staff member
  • Staff member from accounting or auditing
  • Staff member from the storage department

4. Provide the verifiers with a timetable and stock-taking sheet, which is usually serialized and dated.

5. Record notes and other details on the stock-taking sheet with the help of available documents.

6. Physically check and verify stock.

7. Note any discrepancies.

8. Value the stock.

9. Dispatching the necessary certificates, reports, and recommendations.

Stock-taking Sheet

A stock-taking sheet is a printed form that is provided to the verification team. It enables stock verification to be convenient, systematic, and foolproof.

After the process is complete, the findings are summarized and reports are prepared. The total value of the stock is also calculated with the help of the stock-taking sheet.

The following is the proforma of the stock-taking sheet:

Stock-taking Sheet Proforma

1. Quantity Taken by ...........................

2. Quantity Checked by ......................

3. Prices Inserted by ...........................

4. Extension and Additions Inserted by .................

5. Extension and Additions Checked by ................

6. Values of Stock Certified by ...............................

7. Examined by.......................................................

Stock Valuation Sheet

After the completion of stock verification, a stock valuation sheet is prepared to consolidate all stock-taking sheets.

This helps to calculate the value of the materials in hand. A proforma of the stock valuation sheet is given below.

Stock Valuation Sheet Proforma

Stock Verification Procedure FAQs

About the Author

True Tamplin, BSc, CEPF®

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.

To learn more about True, visit his personal website or view his author profiles on Amazon, Nasdaq and Forbes.