Count planning
Cut-off, teams, instructions.
All internal audit & controls services
Internal Audit & Controls
Stock and Fixed Asset Verification
FinAura counts your stock and verifies your fixed assets: planned counts or full verification at your locations, assets tagged and matched to the register, results reconciled to the books, differences investigated to their cause and the records corrected with management approval. The report supports your statutory auditor's reporting on physical verification.
- Chartered Accountant-led
- Bangalore and across India
- Reply within one business day
What is covered
What Stock and Fixed Asset Verification Covers
What the books say, checked against what is there.
Stock counts
Full or cycle counts.
Asset verification
Each asset found and tagged.
Reconciliation
Counts to the books.
Investigation
Differences traced to causes.
Corrections
Approved and posted.
How the month runs
How It Works
Plan, count, reconcile, correct.
Step 1
Plan
- Locations
- Cut-off
- Count sheets
Step 2
Count
- Stock counted
- Assets verified
- Tags applied
Step 3
Reconcile
- To the books
- Differences
- Causes
Step 4
Correct
- Approvals
- Entries posted
- Report
Your part
What We Need From You
- 01Stock and asset registers
- 02Location details and access
- 03Staff to assist on count days
- 04Approval for corrections
Our part
What You Get
- Verified stock and assets
- Differences explained
- Corrected records
- A report for your auditor
A common question
Why do physical counts differ from the books?
Missed entries for receipts or issues, wrong units of measure, damaged or expired stock not written off, assets moved between locations or disposed of without a record, and occasionally theft.
The investigation matters more than the count: finding the cause fixes the process so the difference does not return.
See inventory accountingCorrectedCauses fixed
CountWhat is there
BooksRegisters
Who it is for
Who It Is For
Manufacturers and traders
Stock at year-end and in between.
Companies with many assets
Laptops, vehicles, equipment.
Multi-location businesses
Warehouses and branches.
Companies facing audit
Verification the auditor reports on.
The rules, in plain English
What the Law Says
Companies (Auditor's Report) Order, 2020
Inventory and fixed assets
The statutory auditor reports whether physical verification of inventory and property, plant and equipment was done at reasonable intervals and whether discrepancies were dealt with.
Official source: mca.gov.inAccounting Standards
AS 2 / Ind AS 2
Inventory is valued at the lower of cost and net realisable value, so damaged, obsolete and slow-moving stock found in a count is written down.
Official source: icai.orgThis is general information, not advice for your situation; we confirm what applies to you before any work starts.
Questions we get asked
Stock and Fixed Asset Verification: Questions, Answered
How often should stock be verified?
At least once a year, and more often through cycle counts for high-value or fast-moving items.
Do you tag fixed assets?
Yes. Assets are tagged with a unique number linked to the register, so later verifications are quicker.
What happens to differences?
They are investigated and, with management approval, corrected in the books with the reason recorded.
Can you observe counts for a bank's stock audit?
We can support stock statements and counts; the bank's own stock audit is done by the auditor the bank appoints.
Often Taken Together
All 12 Internal Audit & Controls services01Internal Audit & ControlsInternal AuditRisk-based reviews of purchasing, sales, inventory, payroll, cash and compliance, with findings ranked by what matters and a plan to fix them.02Internal Audit & ControlsRevenue and Receivables AssuranceChecks that every sale is billed, every bill is recorded and every receivable is real and collectable.03Accounting & FinanceAccounting & BookkeepingClean, current books every month, reviewed by a Chartered Accountant.04Accounting & FinanceFinance OperationsReconciliations, payables, receivables and a predictable month-end close.