Audit of Third Party Stock Count for Validation of Accuracy
An advisory, lending and investment company work with business owners, investors, and operators to help them move forward through change. With services in valuations, dispositions, operations and investments the company provide rapid solutions and reliable outcomes for clients at all points in the business life-cycle. Whether to fuel growth or facilitate strategic consolidation, working across industries and around the world to put assets to their highest and best use.
REQUIREMENT
The advisory, lending and investment company needed a stock count completed to confirm stock numbers after the retailer filed for administration, so required RGIS to provide the following:
- Validate the process and accuracy of an external third party count
- To understand, check and report on the process
- Accuracy verification of third party counting
- Record any errors
SOLUTION
The advisory, lending and investment company partnered with RGIS to complete the stock count validation of process and accuracy project, and provided the following:
- RGIS experienced auditors shadowed the third party staff as the count proceeded in order to understand, check and report on the thoroughness of the process, as well as record any errors
- Verified a minimum of 10% of all areas
- Additional random checks in store for accuracy
- Communicated every 30-45 minutes with the Store Manager or Inventory Lead as to progress, verification accuracy and percentage of completeness
- Noted whether the areas were counted as either:
- Auto Quantity (AQ) – all items scanned individually
- Multi-Quantity (MQ) – one item of a group scanned and a quantity entered
- Inventory Assessment Forms using objective scoring and constructive commentary
RESULTS
The advisory, lending and investment company found by outsourcing the stock count validation of process and accuracy project to RGIS, the following results were achieved:
- Stock count was completed
- All errors were recorded to ensure maximum accuracy
- The customer had accurate reporting of all stock in each store