Inventory Verification

Inventory Verification

Inventory Verification is the process of physically inspecting and reconciling a company’s stock of goods, raw materials, and finished products with the recorded accounting and inventory records. This verification ensures that inventory quantities, conditions, and values are accurately reflected in financial statements.

Key Points:

Confirms the existence, quantity, and condition of inventory items.

Reconciles physical stock with accounting records and ERP systems.

Identifies discrepancies, losses, obsolescence, or misstatements.

Ensures compliance with International Financial Reporting Standards (IFRS) and regulatory requirements.

Purpose:

Inventory verification helps businesses maintain accurate stock records, improve internal controls, and support reliable financial reporting, reducing risk and preparing the company for audits or regulatory reviews.