Generate an Excel/PDF workbook for SKU master, GRN, QC, stock issues, transfers, physical count, ageing, NRV, costing, cut-off, write-off, scrap and ERP inventory access.
| Area | Risk | Control | Test | Evidence | Cadence |
|---|---|---|---|---|---|
| SKU master policy | SKU codes, UOMs, categories, costing attributes or active status are duplicated, wrong or unauthorised. | SKU creation approval, master-data change log, UOM/category governance and inactive SKU review. | Review new SKU approvals, duplicate descriptions, UOM mismatches, inactive/reactivated items and costing attributes. | SKU master, item creation ticket, UOM list, category map, approval trail and change log. | Monthly / Quarterly |
| Goods receipt QC | Goods are recorded without actual receipt, accepted outside QC, posted to wrong location or received beyond tolerance. | Gate-entry to GRN match, PO tolerance control, QC hold/release and rejected material tracking. | Match PO, gate entry, GRN, QC and invoice; review tolerance overrides, rejected goods and backdated GRNs. | PO, gate register, GRN, QC report, rejection note, supplier invoice and stock ledger. | Weekly / Monthly |
| Stock issue consumption | Materials, stores or spares are issued without authorised request, production order or usage evidence. | Approved material requisition, production-order linkage, stores issue approval and excess consumption review. | Match issues to requisitions/orders, compare actual to standard consumption, review emergency issues and test returns. | Material requisition, issue slip, production order, BOM, batch card, return note and stock ledger. | Weekly / Monthly |
| Transfers in transit | Inter-warehouse or branch transfers are lost, delayed, duplicated or not received at destination. | Transfer note approval, dispatch/receipt confirmation, in-transit ageing and location reconciliation. | Trace transfer out to receipt in, age open transfers, review damaged/short receipts and reconcile location stock. | Transfer note, dispatch document, transporter proof, receipt confirmation, in-transit ageing and location report. | Weekly / Monthly |
| Physical verification | Book stock differs from physical stock or count variances are adjusted without approval and root cause. | Cycle count plan, independent count team, variance approval and root-cause tracking. | Inspect count coverage, reconcile count sheets to ERP, test variance approvals and review repeat variances. | Count plan, count sheets, variance report, adjustment approval, recount evidence and root-cause log. | Monthly / Quarterly |
| Ageing NRV provision | Expired, damaged, slow-moving or negative-margin inventory remains at cost without provision or disposal decision. | Ageing review, NRV assessment, provision approval and disposal action tracker. | Age no-movement SKUs, compare cost to selling price, review damaged/expired stock and trace provision approval. | Ageing report, sales price list, NRV working, damage/expiry report, provision journal and disposal tracker. | Monthly / Quarter close |
| Costing valuation | Inventory value is misstated due to wrong cost formula, overhead absorption, landed cost or standard cost update. | Costing policy approval, standard cost review, overhead absorption review and landed-cost allocation control. | Recompute sample SKU cost, check cost formula consistency, review overhead basis and test price variance treatment. | Inventory policy, cost sheet, standard cost file, overhead working, purchase invoice and valuation report. | Quarter close |
| Cut-off movements | GRNs, invoices, issues, dispatches or adjustments around period end are recorded in the wrong period. | GRN/invoice cut-off review, dispatch cut-off review, frozen stock period and post-close adjustment approval. | Test pre/post close GRNs and dispatches, match invoices to receipt dates and inspect manual/post-close journals. | GRN register, invoice register, dispatch register, stock ledger, cut-off checklist and journal support. | Close |
| Write-off scrap shrinkage | Inventory is written off, scrapped, sold or adjusted without approval, recovery tracking or accounting review. | Write-off approval matrix, scrap sale reconciliation, shrinkage investigation and insurance/recovery tracking. | Sample write-offs and scrap sales, match scrap to receipts, review shrinkage trends and check recovery accounting. | Write-off note, scrap register, gate pass, sales invoice, receipt proof, shrinkage analysis and approval. | Monthly / Quarterly |
| ERP inventory access | Users can create SKUs, post adjustments, backdate movements, override costing or approve their own stock changes. | Role-based access, SoD review, adjustment log review and leaver/privileged access monitoring. | Review inventory roles, test SoD conflicts, scan manual/backdated adjustments and match leavers to active users. | ERP user list, role matrix, adjustment log, audit trail, HR leaver list and access review sign-off. | Monthly / Quarterly |
Use this with the inventory internal audit checklist, the manufacturing checklist and the monitoring rules repository.
Inventory internal audit is strongest when physical stock, stock ledger, GL, GRN, QC, issue slips, transfers, count sheets, ageing, NRV and costing evidence are tested together. The workbook turns those areas into a documented RCM and monitoring-rule starter.
The Excel export gives auditors separate sheets for engagement scope, RCM rows, SKU master, GRN/QC, issues/transfers, physical count, ageing/NRV, costing/cut-off, scrap/access and monitoring exceptions.
A CA firm is reviewing inventory controls for a company with multiple warehouses, ERP stock ledger, production consumption, transfers and quarter-end physical verification.
