Stock Audit and Physical Verification Services
Bridging the Gap Between Your Books and Reality.
Overview
Your balance sheet says one thing, but does your shop floor agree? Inaccurate inventory and phantom assets can distort your financial health and lead to compliance failures. SCORE provides independent, technology-driven Physical Verification Services.
Who this service is for
Physical verification is for businesses whose balance sheet depends on what is in a warehouse or on a shop floor. That includes manufacturers, retailers and distributors, lenders who need a stock statement they can rely on, and companies where the book stock and the physical stock have quietly drifted apart.
We verify, reconcile and then explain the gap. A count on its own is a number; the value comes from knowing why it differs and what to change so it does not happen again.
What we do
Stock Audits
Fixed Asset Verification
Perpetual Inventory Control
SOP Design
How the engagement works
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Planning and cut-off
We agree the locations, the SKU population, the counting method and a strict cut-off for inward and outward movement. Teams and supervisors are briefed before the count, not on the morning of it.
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Count execution
Counts are performed by our teams using barcode scanners or count sheets, with a second check on high-value and high-risk items. Blind counts avoid the temptation to match the system.
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Reconciliation
Physical quantities are matched to the ERP or stock ledger, and every material difference is investigated against receipts, issues, returns and transfers before a variance is accepted.
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Root cause
We separate process errors from theft, damage, cut-off mistakes and master-data problems. Each cause gets a specific fix rather than a general instruction to be more careful.
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Report and controls
You receive a location-wise report, the variance analysis and recommendations on access, cycle counts, documentation and reconciliation frequency.
What you can expect
The report gives the board and the lender one reconciled position, and gives operations a short list of process changes. Clients who repeat the exercise usually see the variance fall sharply in the second cycle.
Frequently asked questions
What is a stock audit?
A stock audit independently counts and values inventory and reconciles it to the books. It checks quantity, condition, ageing and valuation, and reports the reasons for any difference, together with recommendations to prevent the same gap recurring. The report is written for both management and the lender.
How do you count without stopping operations?
We plan around a cut-off, freeze only the affected locations for the shortest practical window, and count high-risk items first. Where round-the-clock operations cannot stop, we use controlled zone-wise counts with movement logs. The cut-off is documented so the reconciliation is defensible later.
Can you cover multiple locations at once?
Yes. We deploy parallel teams with the same count methodology and supervisor checklist, then consolidate the results centrally. Simultaneous counts are important because stock can move between locations overnight. The consolidated report shows the variance by location and by item.
What is fixed asset verification?
A physical check of plant, equipment, furniture, vehicles and IT assets against the fixed asset register. Assets are tagged, location and condition are recorded, and missing or idle assets are flagged with their book value. The register is then updated to match what is actually on site.
How do you reduce shrinkage?
By finding where it happens. We compare receipts, issues and returns, test access controls and look for patterns by SKU, shift and location. The fix is usually a mix of process change, reconciliation frequency and accountability. We also recommend a cycle-count plan so the next full count is quicker.
Do banks accept your reports?
Yes. Our reports are used for stock statements, working capital reviews and lender audits. We follow the format the lender asks for and are available to answer questions from their credit team. We can also attend the lender's review meeting if required.
How often should stock be verified?
At least annually for statutory purposes, and quarterly or monthly for high-value or fast-moving inventory. Many clients move to cycle counts after the first full audit, with a full count once a year. The right frequency depends on value, movement and the lender's conditions.
What do you need from us before the count?
The stock ledger or ERP extract, the location list, the item master, recent inward and outward documents, and access to the premises. We also need a single point of contact who can resolve cut-off questions on the day.
Can you value the stock as well as count it?
Yes. Where the engagement requires it, we test the valuation method as well as the quantity: cost, net realisable value and the ageing provision. The report sets out the basis used, so the numbers can be reconciled to the accounts and to the lender's statement.
What happens after the count?
You receive a location-wise report, a variance analysis and a prioritised list of process fixes, usually within five working days. We then review the actions with your operations and finance teams, and can repeat the count after a quarter to confirm the variance has fallen.
Talk to the partner who will run this engagement.
A short call is usually enough to say whether we are the right fit.