While the business management is responsible for the goods stocktaking process, under the auditor’s supervision, undertaken at the end of each financial year, business entities sometimes seek to engage an independent party to verify the value of goods inventory independently.
The need arises when the board of directors or executive management believes that the value of inventory is overstated or understated as compared to its fair value (market value).
What is the most appropriate method for goods inventory management?
The most appropriate method for goods inventory management is to invest in software to ensure accurate identification, recording, and valuation of the inventory.
What are the commonly used methods for goods stocktaking?
The commonly used methods for goods stocktaking include the physical stock verification method and perpetual stock verification method. The physical stock verification method is utilized by business entities that manage inventory using manual methods. The perpetual stock verification method is utilized by business entities that have inventory management software systems in place.
What is the added value to business entities from maintaining the Fixed Assets Register?
- Facilitate developing a system to safeguard goods inventory.
- Facilitate the stocktaking of goods inventory at any time.
- Provide ready access to detailed information about fast and slow-moving inventory to guide management decisions in line with supply and demand. and
- Set minimum and maximum limits for the goods inventory size, which will help streamline the working capital cycle.
What are the services offered by Baker Tilly Kuwait?
- Make recommendations to form goods stocktaking committee.
- Carry out stocktaking using barcode systems and/ or manually.
- Suggest inventory management systems including identification, recording, and tracking systems, and link the same with the company’s existing accounting systems.
- Prepare reports on the stocktaking results.