Client one-pager, stock and book debts audit

Stock and receivables audit — what it is and why your bank wants it

What it is. Your working capital limits are secured against your stock and your receivables, and your bank calculates how much you may draw from the statements you submit each month. A stock and book debts audit is an independent check, usually quarterly or half-yearly, that the stock and receivables you have reported to the bank actually exist, are valued reasonably, and belong to you. Your bank is our client for this engagement, not you — the report goes to the bank, and we tell you that at the outset so that there is no misunderstanding.

What we need from you. Access to every location where stock is held, including material lying with job workers; your item-wise stock ledger as at the visit date; your receivable ageing party by party; confirmations from job workers; insurance policies covering the stock; and the stock statements you have filed with the bank for the last twelve months.