Auditing inventory in a different country comes with challenges. For international businesses with a presence in New Zealand, verifying physical stock, plant, and equipment for a remote subsidiary can be complex, costly, and time-consuming.

Distance often creates obstacles. Sending staff across national borders is expensive, logistically challenging, and often impractical. That is where we come in.

How BVO Audit can help with stock takes

At BVO Audit, we act as your independent audit team on the ground helping you meet audit requirements efficiently and reliably. We can assist other auditors in attendance at their inventory stock counts. We can take instruction from the audit firm and undertake an agreed upon procedure engagement to be their “feet on the ground” to assist with inventory and property, plant and equipment audit procedures.

While auditors are not performing inventory count themselves, they are responsible for observing and taking notes of processes and procedures in place alongside the completion of audit count workpapers.

When auditing a company with significant inventory holdings or high-value equipment, auditors must ensure the stock exists, confirm it is in good condition, and verify that the audit process follows best practice.

Besides observing a stock count and quality of stock, auditors may be required to verify a sample of the inventory. The samples of the inventory are normally selected based on the auditor’s professional judgement from the inventory listing at the date of the stock count.

Usually, the sample size is around 25-30 items, which are traced in both directions – from inventory list to the floor and from the floor to the inventory list. When selecting the items the auditors should aim to select items with a higher risk, unusual descriptions, high-value items or any other items which may easily be subject of theft.

We provide clear, reliable reporting. Our findings feed directly into your audit process, giving you confidence in the accuracy of your New Zealand subsidiary’s financials.

Industry expertise and experience

We have assisted international audit firms with stock take observations for clients in industries such as manufacturing, retail, and logistics. Our team has experience working with large-scale inventory systems and complex audit requirements, ensuring compliance with international auditing standards.

A trusted partner for international auditors

If your firm is auditing a company with a presence in New Zealand, BVO Audit can provide the local expertise and on-the-ground support you need.

Get in touch to discuss how we can assist with inventory, plant, and equipment audits in New Zealand.