CORAA

Inventory Audit Working Paper (Ind AS 2 / AS 2) — ICAI Audit Working Paper

The inventory audit working paper (ind as 2 / as 2) working paper from ICAI AASB's Audit Working Paper Templates (June 2023). Pre-stamped with your firm letterhead, editable in Word.

Free · ICAI AASB (June 2023)
Updated 28 May 2026
Source
ICAI AASB (June 2023)
Chapter
3. Execution
Section
3.22
Format
Microsoft Word (.docx)
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Your firm — letterhead
Appears at the top of the document as the audit firm letterhead.
Used as the letterhead block.
Engagement details
The client and period this document is for.
The financial year-end this engagement covers, e.g. 31 March 2026.
What’s inside

An excerpt from the template.

XYZ Company Private Limited (The company) is incorporated under the provisions of the Companies Act 2013, to carry on business of manufacturing, buying, selling, processing, importing, exporting and trading in all type of grocery, food, food product, dairy product, bakery and confectionary product whether as owner, co-owner, joint venture, operator, franchisee or any other business model. The company is involved in the sale of food items to its Group Companies, who ultimately prepare the food and supply.

The purpose of the workpaper is to document the work done on the inventory of XYZ Company Private Limited.

Obtained the signed stock verification sheet of the company conducted at the subsequent dates.

Obtained the stock summary of the company from the accounting software.

↑ Excerpt only — the full template is what you download as Word
About this template

What you’re downloading, and when to use it.

This template follows the format published by the Institute of Chartered Accountants of India (ICAI) in the AASB Audit Working Paper Templates (June 2023), the authoritative reference for Indian statutory-audit documentation. Fill in your firm’s letterhead and the engagement details on the form above, click Download Word file, and you’ll get a fully formatted .docx ready to use.

Everything is generated in your browser and on a stateless API endpoint — no account, nothing stored on our servers. We’ll ask for a work email once before your first download so we can send you the file and the occasional relevant update; after that, downloads on this device are instant. Edit freely in Word, Google Docs or Pages before sending to your client.

Common questions

FAQs.

What's the auditor's specific obligation for inventory existence?
SA 501 requires attendance at physical inventory counting where inventory is material, unless impracticable — observing the count, test-counting a sample, and reconciling the count results to the books.
What's the valuation basis inventory should be tested against?
Lower of cost and net realisable value under Ind AS 2 / AS 2, with cost determined on a consistent basis such as FIFO or weighted average — with specific attention to slow-moving or obsolete stock where NRV may have fallen below cost.
Does CARO 2020 require anything on inventory beyond existence?
Yes — clause (ii)(a) requires reporting on physical verification frequency and whether discrepancies of 10% or more in aggregate were properly recorded in the books.
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