Our Approach to Stock & Book Debt Audit
We conduct detailed verification of stock, receivables and drawing power statements through physical checks, documentation review and financial analysis to provide banks with a true picture of the borrower’s operational and financial discipline.
Key Audit Coverage & Deliverables
- Physical stock verification and comparison with reported figures
- Valuation review and assessment of movement, ageing and slow-moving stock
- Verification of book debts, overdue receivables and doubtful recoveries
- Review of stock and debtor statements submitted to banks
- Drawing power calculations and identification of reporting gaps
- Detection of inflated turnover, circular trading or diversion indicators
- Assessment of overall working capital cycle and borrower discipline
- Clear, evidence-based reporting for informed credit decisions
Why Choose Us for Stock & Book Debt Audit
Our audits provide lenders with accurate insights into borrower performance, ensuring better credit monitoring and reduced risk.
- Strong domain expertise in borrower-level and fund-based audits
- Accurate variance analysis backed by documentation and field verification
- Practical, actionable insights for banks and financial institutions
Frequently Asked Questions
What is a Stock & Book Debt Audit?
An audit that verifies the accuracy of a borrower’s stock and receivables to support reliable drawing power and credit decisions.
Why do banks require this audit?
To confirm whether working capital limits are backed by genuine stock and receivables and to detect inflation or diversion.
What areas are covered in the audit?
Physical stock checks, valuation, receivable ageing, financial discipline, reporting accuracy and drawing power calculations.
Does the audit detect circular trading or inflated turnover?
Yes, unusual debtor patterns, mismatches and inconsistencies are reviewed for such risks.
What documents are required?
Stock registers, sales/purchase invoices, debtor ledgers, stock statements, financial records and bank submissions.
How does this audit help banks?
It provides clarity on borrower performance, reduces credit exposure risk and strengthens monitoring of working capital limits.
Does the audit affect borrower operations?
No, stock verification and data review are coordinated with minimal disruption.
How detailed is your reporting?
Our reports include variance analysis, risk indicators, evidence-backed findings and actionable recommendations.
How experienced is your firm in such audits?
We have extensive hands-on experience across multiple sectors, trading units, manufacturers and export businesses.