Stock Take Process 4

Appropriate segregation of duties ought to exist through stock take.

Being an auditor, we will need to observe that the stock take group consist of:

• Counter (Warehouse personnel)
• Checker (Staffs from department besides warehouse division

Warehouse personnels will be the those who has direct access for the Company's stocks. Why really should the warehouse personnel (counter) accompanied using a checker through stock take? That is to stop prospective fraud case and observe the standard inventory management procedures with the client. Warehouse personnel will be the those who has day-to-day access for the warehouse. Assuming, they steal one particular and reported a single stock lesser through stock take, no one is not going to recognize the fraud case, unless the inventory method capture the each day movement.

To illustrate with an instance. Corporation XYZ will not has right inventory system that retain track on goods in and goods issued. The Corporation is not going to know the precise quantity with the inventory item, till the physical stock take, which can be performed on a month-to-month basis. The employee could have just steal one particular item and  letting persons recognize.

Therefore, stock take group ought to consist of no less than one particular individuals from other division to verify that the quantity counted and reported is as what have already been counted physically.

STOCK TAKE PROCESS

Stock take process is exactly where one particular physically requirements to count the complete stock inside the retail store and tally the exact same together with the system stock. Stock take is amongst the significant activities carried out in retailing since it includes understanding your stock in hand, your stock worth, identifies damages and shrinkages. To sump it up a stock take aids the retailer comprehend the inventory of his retail store in actual. It aids him also to analyse his enterprise as to exactly how much profit is he earning. The overall performance with the retail store and its profitability is identified by this stock take process. Therefore it can be incredibly necessary that a stock take when carried out requirements to become performed quite systematically with suitable planning  to get the ideal outcome or else the complete goal with the identical will not be justified.

The manager is accountable for the complete stock take process. A stock take process is performed after within a year, half yearly or quarterly according to the size of  retail store plus the quantity and volume of stocks readily available. To make sure an appropriate and effective stock take the complete activity is carried out through non-trading hours inside the retail outlet. A  checklist really should be in plac and pre-stock take activities should be conducted