Our company year-end is coming up – what do I do about my scheduled stocktake?

Whilst stock counts will need to be assessed on a case-by-case basis, if you anticipate your stocktake to be disrupted as a result of an issue, there are a number of alternative options that should be discussed with your auditor:

• Attendance at an inventory count imminently, with the intention of performing a roll-forward to the year-end date;
• Attendance at an inventory count subsequent to the year-end, with the intention of performing a roll-back to the year-end date;
• If applicable, attendance at a scheduled Perpetual Inventory count prior to year end; or
• If applicable, and depending on the nature of inventory, virtual attendance (via video conferencing facility).  This approach would need consideration by your and your auditor as to whether it was feasible and sufficient evidence can be gathered through such means.  

The level of audit assurance that can be obtained from each of these approaches, and the impact on the audit report and audit opinion, will be dependent on many factors. We therefore recommend that you reach out and discuss your options with your auditor as soon as practicable.