Stock, inventory and debtor verification audits
IK Audit, Assurance and Advisory offers independent assurance over stock and receivables, helping sole traders and businesses maintain accuracy, transparency, and control over key financial balances where full financial statement audit is not relevant or not required.
What is a stock and debtor audit?
A stock and debtor audit is an independent review of key working capital balances, focusing on inventory and receivables. While not always mandatory, these audits are commonly requested by lenders, investors, and business owners to provide assurance over the accuracy, existence, and valuation of these balances.
They play an important role in strengthening financial control, improving reporting reliability, and identifying potential risks within day-to-day operations.
Debtor audit
A debtor audit focuses on verifying the existence, recoverability, and accuracy of receivables recorded in the financial statements. It helps assess whether amounts owed to the business are valid and appropriately valued.
Our procedures may include:
- Obtaining independent confirmations from customers
- Reviewing cash receipts after year-end to support outstanding balances
- Performing cut-off testing around reporting dates
- Assessing provisions for doubtful debts
- Reviewing write-offs and credit adjustments during the period
Stock audit
A stock audit is designed to verify the existence, condition, and valuation of inventory at a point in time. It also assists in identifying discrepancies, control weaknesses, and potential risks such as misstatements or irregularities.
Our procedures may include:
- Attending stocktakes to observe counting procedures
- Performing sample testing between physical counts and inventory records
- Reviewing supporting documentation for inventory valuation
- Conducting cut-off testing for inventory movements
- Assessing provisions for obsolete or slow-moving stock
How can we help
At IK Audit, Assurance and Advisory, we provide independent stock and debtor audits tailored to the needs of each business. Our focus is on delivering accurate, reliable assurance while identifying areas for improvement in controls and processes.
Beyond verification, we provide practical insights to help strengthen working capital management and support better financial decision-making.
Ready to talk?
Whether you need an independent audit or strategic advisory support, we'd be glad to discuss your needs.