Our Approach to Internal Audit
We conduct stock and receivable audits using a structured, evidence-based methodology that ensures accurate verification, reliable reporting and deeper insights into financial discipline and fund utilisation.
Key Audit Checks & Deliverables
- Physical verification of stock and comparison with records
- Verification of valuation methods and ageing analysis
- Assessment of receivable recovery, credit discipline and stress indicators
- Review of stock statements submitted to banks vs actuals
- Drawing power verification and variance analysis
- Identification of diversion, circular trading or inflated reporting
- Practical insights to strengthen financial discipline and reporting accuracy
Why Choose Us for Stock & Receivable Audit
Our audits help lenders and businesses maintain financial transparency, prevent reporting risks and monitor credit exposure effectively.
- Strong hands-on experience in borrower-level audits
- Accurate, evidence-backed findings and documentation
- Sector-wide expertise across trading, manufacturing and export-driven businesses
Frequently Asked Questions
What is a Stock & Receivable Audit?
An audit to verify the accuracy of inventory and receivables, ensuring they reflect the true financial position of the business.
Who requires this audit?
Banks, financial institutions and lenders typically mandate this audit for borrowers availing working capital limits.
How is the audit conducted?
Through physical stock checks, ledger verification, receivable ageing analysis and comparison with bank-submitted statements.
Can this audit detect overstatement or diversion?
Yes — it highlights inflated stock, circular transactions, valuation issues and diversion indicators.
What documents are required?
Stock registers, purchase/sales invoices, production records, receivable ledgers, stock statements and financial books.
How often should this audit be performed?
It may be quarterly, half-yearly or annual, depending on bank policy and business risk profile.
Does this audit affect drawing power?
Yes — discrepancies between reported and actual stock/receivables may reduce drawing power or trigger corrective action.
How does Sakariya & Associates add value?
Through accurate verification, sector knowledge and practical insights that help banks and businesses make informed decisions.