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Stock Audit Services

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Inventory auditing services in Dubai, UAE

Inventory is one of the most important assets of a company. In the supply chain process, inventory management protects the company from stock-outs, controls deliveries to multiple locations and keeps accurate records. Effective inventory management is essential for every small, medium or large company. The UAE government has set authoritarian laws and regulations on the stock checking process. Therefore, it is advisable for every company to outsource to experts in the field of stock auditing in Dubai and save their ears from penalties for non-compliance.

What is stock/inventory auditing?

A stock audit can also be described as an inventory check. Inventory control is a routine business activity, but sometimes management fails to regulate proper inventory recording and verification in accordance with auditing laws. To overcome this problem, companies choose to hire professional audit firms in the UAE to prove the accuracy, maintenance and ownership of inventories. The main objective of an inventory audit is to gain a better understanding of the current inventory records and to reconcile existing inventory records.

Scope of Inventory Audit Services in Dubai

An inventory audit is carried out to analyses the inventory levels of a company with the recorded inventory records. It ensures that the financial records of the stock are accurately maintained in the accounting software database. The company deals with different types of stock such as fast-moving stock, slow-moving stock, damaged stock, unserviceable stock and obsolete stock. Therefore, once a year or twice a year, organizations should apply an inventory control process to properly manage the classification of these inventories. This is usually carried out by banks and financial institutions on behalf of their corporate customers who have used these stocks to secure loans.

The stock verification process will check whether the stocks are expired, obsolete or damaged. Our stock verification service in Dubai also ensures that both surplus and shortage stock is accounted for. We check your stock statistics and help management protect stock from damage and fraud.

Key aspects of inventory control

The accuracy of inventory records is also very important for a robust accounting system and MIS reporting. These are the key aspects of an inventory control report in the United Arab Emirates:

  • Inventory records
  • Stock reconciliation
  • Physical stock reports
  • Stock valuation
  • Stock coding
  • Stock categorization

How do We Carry out a Stock Audit in the UAE?

The stock audit process in the United Arab Emirates requires proper planning, experience and knowledge of audit laws. There are a few key things we notice when conducting stock audits in Dubai and other Emirates. We prepare and assess the age, suitability, movement, acquisition and market price, as well as the direct and indirect costs of inventories. In this way, the existence, accuracy and rightful ownership of the company’s goods are guaranteed.

Our stock audit services in Dubai, UAE, ensure compliance with International Accounting Standard 2 for your stock check. Under IAS 2, inventories should be valued at lower of cost or net realizable value (NRV). It specifies allowable costing methods, including specific identification (in some cases), accounting for most types of stock, first-in-first-out (FIFO) accounting and weighted average cost. The objective of IFRS 9 which was implemented after January 01, 2018 is to prescribe the cost of inventories, cost formulae for calculating inventories, inventory accounting treatment and recognition of expenses, including NRV.

Inventory/Inventory Audit Procedures

Inventories often move around during working days, making it difficult for organizations to carry out a routine physical check. The company or a third party auditor can conduct an inventory audit in Dubai, UAE to identify any issues in the organization’s stock storage and accounting methods. They fully assist you with the mandatory inventory control and verification audit procedures. Management can choose the audit process or the auditors can suggest a suitable inventory audit process. A list is given below:

  • Cut-out analysis
  • Physical inventory
  • Analytical procedures
  • ABC analysis
  • Freight cost analysis
  • Finished goods cost analysis
  • Overhead cost analysis
  • Reconciling items
  • Reconciliation of invoices to the dispatch journal

Choose BestaxCA for stock audit services

Bestax chartered accountants and business consultants help small and large businesses with accounting and auditing services in Dubai. We are associated with the country’s top auditors to help you with tax audit, internal audit, and liquidation audit and stock/inventory audit services in the UAE. Our team is qualified enough to manage your low-volume inventories as well as high-volume inventories in compliance with regulatory requirements. We are proficient in verifying your physical stock against the stock recorded in the software. Where necessary, they classify and re-categorize your stock, identify gaps in your current stock management and recommend the best solutions. BestaxCA helps you to better understand your stock portfolio as well as to properly reconcile your stock records. Get the best inventory audit services in Dubai and make sure your inventory is accurate and up-to-date. Contact us!

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However, I was the head of the finance department yet still found it difficult to conduct a financial audit in accordance with UAE regulations. Although, due to the competence and experience of BextaxCA's qualified auditors, all my concerns have been resolved

ylie Johnson

Accounts Manager, Abu Dhabi, General Trading Company

I utilized BestaxCA's accounting and bookkeeping services for my retail business in Abu Dhabi. It was fascinating to observe how they handled the finances. They provided me with out-of-the-box accounting solutions, which were really useful

Abdul Kaleem

Finance Manager, Dubai, Manufacturing Company

As per FTA requirements, the Bestax Chartered Accountants in UAE assisted me with VAT registration and filing. I personally consult with their tax experts to ensure they have the expertise necessary to provide timely answers

Abdul Kaleem

Finance Manager, Dubai, Manufacturing Company

I was so happy with the BextaxCA's services that I decided to use them for my personal tax planning and return filing. They really know their stuff when it comes to taxes!

Dwayne Perkins

Accounts Manager, Dubai, Services Provider

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 We provide a free 30 days trial, No upfront payment! If you are not satisfied with our services, you don’t pay anything