Inventory Management Audit

Conducting an Inventory Audit in the UAE

An Inventory Audit is an crucial a part of Inventory management. The UAE is an worldwide hub for exports and imports; hence, many agencies preserve bodily inventory of items. Conducting an inventory audit ensures that the stock written in the financial books is verified against the physical stock tally. Auditing companies in Dubai assist corporations examine their inventory accurately. Read on to find out more.

Does Your Company Require an Inventory Audit?

Some factors that determine your company requires an Inventory audit:

1. The volume of stock

If the inventory of uncooked materials, completed goods, or different belongings can not rely and validated via way of means of a unmarried man or woman counting via way of means of hand, you want an stock audit procedure. Read More

Inventory Audit Procedure in Dubai

SK Financial Services is your partner in conducting an internal inventory audit or an external inventory audit for your company. Every enterprise has a one of a kind length and quantity of products they manage, and therefore we recognize the equal and offer a custom stock audit technique for our clients.

Our inventory audit report aims to reduce our client’s stress when it comes to errors in inventory management and the subsequent rise in working capital. Analytical ratios such as inventory turnover ratio or unit costs of inventory are a crucial part of the financial analysis of the stock.

Here is the way it works: Read More

1. Physical Inventory Count Audit

Each object stocked has a bar code, and as a result the motion of the products is tracked primarily based totally on those bar codes or batch codes. A bodily stock rely audit guarantees that the inventory rely in monetary facts is similar to bodily inventory.

2. Cut off Analyzation

You will receive a qualified audit opinion on inventory from our experts that will examine the stock based on the company’s cut off period, which marks the inventory coming in And going out, thinking about a buffer of inventory this is with inside the motion to head in and flow out of the warehouse. This helps in accounting for the inventory without any errors.

3. ABC Analysis or High-Value Item Inventory

Every item in the in-stock has its value, but the auditor has to spend some extra time to evaluate the goods of higher value so they can catagorise them—A for high-value goods, B for medium and C for low-value goods.

4. Freight Cost Analysis

When inventory has to move domestically or internationally, several costs are associated. An stock audit in Dubai will remember all such expenses, together with breakage or harm throughout transit to the destination. Freight Cost Analysis also plays an important role when the subsequent rises in transportation costs occur, viz rising fuel prices due to inflation, thus managing the stock’s price accordingly.

5. Finished Goods Inventory

Finished goods inventory is the inventory audit of goods ready to be sold. An stock audit will don’t forget the cost of the products and concurrently account for his or her correct cost with inside the monetary books.

6. Overhead Analysis

Holding of inventory has oblique expenses associated with it, inclusive of lease of the warehouse, the income of the safety guard, and utilities are some examples. The overhead evaluation is an optionally available step in an stock audit. Still, it plays a significant role in accurately calculating the stock cost and thus helps in budgeting for the following year.

7. Direct Labor Costs

An stock audit allows hint the direct exertions charges associated with the manufacturing of goods. It consists of verification of task cards, time-sheets, or even third-celebration labor contracts.

8. Work in Progress Inventory

The percentage of goods in production is calculated but determines the work in progress inventory. Inventory is in use or about to be used based on the percentage of work completed. Hence being a vital step in an stock control audit.

9. Auditing Inventory Allowance

Inventory allowance summarizes the general inventory allowance related to obsolete inventory, scraps, etc. This audit is carried out with the aid of using bodily gazing the stock utilization all through manufacturing to decide whether or not the inventory is out of date or scrap. It also helps select FIFO or LIFO methods of managing the inventory.

10. Verification of Ownership

Stock is an asset, and the business enterprise should very own it. The stock audit in Dubai guarantees that bodily inventory belongs to the agency and now no longer to a customer-owned stock or is an stock on consignment from suppliers.

Increase Your Profits with an Inventory Audit in Dubai

Conducting an stock audit in Dubai ambitions to lessen losses because of inaccurate stock accounting and bad stock management. SK Financial Services is one of the leading inventory audit companies that has been conducting internal and external audits for companies across the UAE.

Our crew of certified professional auditors are eager analysts who’ve helped customers regain a stronghold of their stock control procedure. We use the latest inventory audit software and support all types of enterprises to accurately remodel their procurement’s and supply chain approach based on a customized checklist.

Our auditors have assisted agencies in efficiently auditing and transiting monetary facts while agencies improve to computerized stock control software. Click here to book a consultation today!

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Inventory Management Audit

Conducting an Inventory Audit in the UAE

Does Your Company Require an Inventory Audit?

1. The volume of stock

2. The type of goods

3. Speculation of phantom inventory

4. If the goods are placed at a third-party warehousing

5. You have an inventory management process.