Tag: stocktaking techniques

Don’t neglect your inventory count!


If anything’s going to go wrong in the financial statements, more often than not it’ll be in the stock figure, a figure which is key to a number of cycles in accounting. The annual inventory count is, for most businesses, their best chance at spotting any anomalies in the reported figure for stock, and yet neither is there much guidance on it in IFRS, which basically ignores stock take advice and talks about much more theoretical matters at tedious length instead, nor in most national law. It’s the management’s duty to get their stock count right, but they have an ally in this duty – the audit profession. And that applies whether or not they actually are going to have an audit…