How do I verify the Inventory lying with Third Party of my client?
How do I verify the Inventory lying with Third Party of my client?
Chiranjibi Mar. 12, 2018
If your client shows Inventory lying with third parties in their books of accounts, you can refer the following points to verify the same.
- Obtain confirmations from the third party including the time period and reasons thereof.
- Evaluate condition of goods and see whether adequate provision has been made.
- Check whether subsequently the goods lying with third party were sold or received back after the expiry of stipulated time period.
- Ensure that the goods have been included in the closing inventory though lying with third party.
