Inventory Audit Services

Inventory audits check to ensure that financial records match a company’s inventory records and that those records align with a physical inventory count. An Inventory Audit is an integral part of Inventory management. The UAE is an international hub for exports and imports; hence, many companies maintain physical stock of items. Conducting an inventory audit ensures that the stock written in the financial books is verified against the physical stock tally. Auditing firms in Dubai help companies analyze their stock accurately.

Inventory Audit Procedure

Each company has a dissimilar size and capacity of goods they manage, and hence we recognize the same and provide a custom inventory audit process for our clients. Our inventory audit report aims to reduce our client’s stress when it comes to mistakes 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 how it works:

  1. Physical Inventory Count Audit.
  2. Cut off Analyzation.
  3. ABC Analysis or High-Value Item inventory.
  4. Freight Cost Analysis.
  5. Finished goods inventory.
  6. Overhead Analysis.
  7. Direct Labor costs.
  8. Work in progress inventory.
  9. Auditing inventory allowance.
  10. Verification of ownership.

Benefits of Inventory Auditing.

Any company can benefit from inventory auditing. Here’s a look at some of the advantages for both public and private companies.

Calculate profits: Inventory audits can help businesses compute their profits more accurately by providing an account of their current inventory levels and relevant transactions. These insights are beneficial because they help businesses accurately define trends that help forecast their sales and profits. With these predictions, they can assess current inventory to ensure they are not over or under-supplied.

Create more accurate budgets: Inventory audits also provide businesses with insights into current stock levels and how they relate to market trends and demand. This information helps plan more accurate budgets for stock ordering, warehousing, and customer order fulfillment. By keeping stock of the available inventory levels, businesses can plan and time supply levels and avoid over-ordering and wasting resources. They can also ensure they always have sufficient supplies to meet demand and limit shortages.

Identify inefficiencies in your operations: Auditing can help businesses identify inefficiencies in their warehouse management methods by providing an objective assessment. Auditors can review processes and procedures to determine inefficiencies and identify possible improvements. Auditors can also identify inaccurate or unsecured tracking techniques, helping businesses avoid losses before they occur.

Reduce carrying costs: Carrying costs are expenses associated with storing, transporting, and managing inventory. These expenses will typically cover storage, insurance, and taxes. Inventory auditing can help businesses identify ways to reduce carrying costs by ensuring that proper inventory management processes are in place.

Creative Insight Solutions Auditing | Accounting | Taxation LLC has been working with an alliance of a group in corporate Sector across four continents including GCC & USA. If you requisite any kind of services of the segment described above contact us, our sale lineup shall be there to contact you and our consultants shall be ready to serve you with generation of our best services.