Stock audit or inventory audit is a term that refers to physical verification of a company or institution's inventory assets. Every business organization needs to perform an audit once a year to update and ensure that the physical stock and the computed stock match.
This scheme under Foreign Trade Policy allows technological up-gradation of the indigenous industry. Export Promotion Capital Goods (EPCG) Authorizations are issued by licensing authority – Director General of Foreign Trade (DGFT) based on the certificate issued by an Independent chartered engineer.
Verification of fixed assets consists of an examination of related records and physical verification. The auditor should normally verify the records concerning the documentary evidence and by evaluation of internal controls. Physical verification of fixed assets is primarily the responsibility of the management.