Inventory Audit Services in Dubai, UAE
At Farahat & Co., we understand that effective inventory management is crucial for operational efficiency and financial accuracy.
Our stock Audit Services in Dubai, UAE, are designed to help businesses maintain precise stock records, detect discrepancies, prevent losses, and ensure compliance with accounting standards.
With decades of industry experience, our certified auditors use proven methodologies and advanced tools to deliver detailed inventory assessments tailored to your business needs.
Whether you operate in retail, manufacturing, logistics, or wholesale, we ensure that your stock records reflect reality, empowering you to make informed decisions and optimize your supply chain.
Key Factors That Indicate Your Company Needs an Inventory Audit
1. The Volume of Stock
If the stock of raw materials, finished goods, or other assets cannot be counted and verified by a single person by hand, you need an stock audit procedure.
2. The Type of Goods
Suppose the volume of goods is required to be verified by law. According to the IAS 2, stock must be measured at its Net Realisable Value.
3. Speculation of Phantom Inventory
Phantom stock occurs when the quantities of goods or raw materials recorded in your books do not match the actual physical stock. Detecting and resolving phantom stock is a key part of effective inventory audit services, helping businesses maintain accurate records, reduce losses, and improve operational efficiency.
4. If the Goods Are Placed at a Third-party Warehouse
Some companies require stock audits in Dubai because their stocks are stored in third-party warehouses within Dubai or other emirates.
5. You Have an Inventory Management Process
An stock management audit process is incomplete without a proper internal or external audit.
Inventory Audit Procedure in Dubai, UAE
Farahat and Co. is your partner in conducting an internal or an external audit for your company. Every company has a different size and volume of goods they manage, and hence we understand the same and provide a custom holdings audit process for our clients.
Our inventory financial assessment report aims to reduce our client’s stress when it comes to errors in holdings management and the subsequent rise in working capital.
Analytical ratios such as the stock turnover ratio or unit costs of inventory are a crucial part of the financial analysis of the holdings.
Here is how it works:
1. Physical Inventory Count Audit
Each item stocked has a bar code, and hence, the movement of the goods is tracked based on these bar codes or batch codes. A physical holdings count audit ensures that the stock count in financial records is the same as the physical holdings.
2. Cut-off Analyzation
You will receive a qualified audit opinion on holdings from our experts, who will examine the holdings based on the company’s cut-off period, which marks the inventory coming in and going out, considering a buffer of holdings that is in the process of going in and moving out of the warehouse.
3. ABC Analysis or High-Value Item inventory
Every item in the in-stock has its value, but the auditor has to spend some extra time to evaluate the goods of higher value so they can categorize them—A for high-value goods, B for medium, and C for low-value goods.
4. Freight Cost Analysis
When inventory has to move domestically or internationally, several costs are associated. An stock audit in Dubai will consider all such expenses, including breakage or damage during transit to the destination. Freight Cost Analysis also plays an important role when the subsequent rises in transportation costs occur, viz, rising fuel prices due to inflation, thus managing the stock’s price accordingly.
5. Finished Goods Inventory
Finished goods inventory is the audit of goods ready to be sold. An stock audit will consider the value of the goods and simultaneously account for their accurate value in the financial books.
6. Overhead Analysis
Holding of stock has indirect costs related to it, such as rent of the warehouse, the salary of the security guard, and utilities are a few examples. The overhead analysis is an optional step in that types of audit. Still, it plays a significant role in accurately calculating the holdings cost and thus helps in budgeting for the following year.
7. Direct Labor costs
Holdings audit helps trace the direct labor costs related to the production of goods. It includes verification of job cards, timesheets, and even third-party labor contracts.
8. Work in Progress Inventory
The percentage of goods in production is calculated but determine the work-in-progress holdings. This is in use or about to be used based on the percentage of work completed. Hence, it is a crucial step in an inventory management audit.
9. Auditing Inventory Allowance
Inventory allowance summarizes the general inventory allowance related to obsolete
holdings, scraps, etc. This audit is conducted by physically observing, usage during production to determine whether the stock is obsolete or scrap. It also helps select the FIFO or LIFO methods.
10. Verification of Ownership
holdings is an asset, and the company must own it. This types of audit in Dubai ensures that physical holdings belongs to the company and not to a customer-owned holdings or is an inventory on consignment from suppliers.
Increase Your Profits with an Inventory Audit in Dubai
Conducting an stock audit in Dubai aims to reduce losses due to erroneous stock accounting and poor stock management. Farahat and Co. is one of the leading inventory financial assessment companies that has been conducting internal and external audits for companies across the UAE.
Our team of qualified expert auditors is a keen analysts who have helped clients regain a stronghold in their stock management procedure. We use the latest stock financial assessment software and support all types of enterprises to accurately remodel their procurements and supply chain approach based on a customized checklist.
Our account examiner have assisted companies in successfully auditing and transitioning financial data when companies upgrade to automated stock management software.
Get A Quote
+971 52 6922588 | Tel: +971 4 2500251 | E-mail: sales@farahatco.com
