Can Anyone Explain Internal Check Over Stock?


1 Answers

Amen Bukhari Profile
Amen Bukhari answered
The goods received note shoe the receipt by purchase department. One copy is handed to store keeper, another to account department and third copy is kept by purchase department. The stock should be given in custody of responsible officer. There is need of proper protection. The leakage of goods, misuse and theft may be checked properly. The limits must be determined by management. The lower limit, upper limit, order point, economic order quality and buffer stock must be determined in order to have proper check over stock.

The stock movement procedure should be followed. The foreman or sales manager must use requisition slip for issue of stock. The complete record must be maintained. The stock may be checked after certain interval. The stock register and stock ledger cards may be examined. The physical checking may be made to know the stock on hand. The stock may be held by other people. The public warehouse may be used for proper storage. The receipt of warehouse may be considered to note the quantity of stock held.
The stock may be stated at cost or market which ever is lower. The stock valuation method must be remain the same. The auditor must check the calculations involved in valuation.

Answer Question