Stock Audit
A physical verification and valuation exercise over a company's inventory, often performed by a third party at a bank's request as a condition of working capital finance.
Related terms
- Statutory Auditor vs. Internal Auditor
The statutory auditor is independent of the company and reports externally to shareholders on the financial statements; the internal auditor is typically engaged by (or employed within) the company and reports internally on operational and control matters.
- Statutory Registers
The registers a company is legally required to maintain under the Companies Act — of members, directors, charges, related party contracts and others — distinct from its accounting books.
- Subsequent Events
Events occurring between the balance sheet date and the date the financial statements are approved, which may require adjustment or disclosure.
- Substantive Procedures
Audit procedures designed to detect material misstatements at the assertion level directly — tests of detail and substantive analytical procedures.
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