Inventory Audit Services UAE

An independent inventory audit confirms the physical existence and valuation of stock reported on your balance sheet. It prevents financial misstatements, detects stock shrinkage or theft, satisfies statutory auditor requirements, and supports bank credit facility covenants.

While an annual comprehensive stock count is mandatory for statutory financial statements under UAE law, high-volume trading, manufacturing, and e-commerce companies benefit from monthly or quarterly cycle counts to maintain tight inventory control.

Under IAS 2 and UAE Corporate Tax rules, inventories must be valued at the lower of cost and Net Realizable Value (NRV). Cost must be calculated using consistent formulas such as First-In, First-Out (FIFO) or Weighted Average Cost (WAC); the LIFO method is prohibited.

We collaborate with warehouse management to schedule counts during low-activity periods, weekends, or after business hours. Alternatively, we establish strict cut-off procedures and freeze specific warehouse aisles sequentially to allow shipping to continue.

When variances occur between physical counts and system balances, our auditors perform root-cause investigations—checking unrecorded sales, processing errors, goods-in-transit timing, or scrap write-offs—and provide formal adjustment journal recommendations.

Yes. Our teams inspect physical packaging conditions, expiry dates for perishable items, and review inventory turnover ratios to identify non-moving stock requiring financial write-downs under IFRS.

Clients receive a comprehensive Inventory Audit Report comprising certified physical count sheets, variance reconciliation schedules, valuation assessments, cut-off testing summaries, and internal control recommendations for management.

Yes. We conduct certified inventory audits across all UAE Free Zones (such as JAFZA, DAFZA, KIZAD, and HFZA) as well as Designated Zone customs warehouses, ensuring compliance with both local customs and FTA regulations.