Stock Count Report

PRIVATE AND CONFIDENTIAL

HP PPS Asia Pacific Pte. Ltd

Report compiled by Protiviti Pte Ltd

for the review of the inventory management
processes at the following location(s):

Norde International Distributors

102 Kalayaan Avenue, Quezon City
Metro Manila, Philippines

November 11, 2019

Intellectual Property Clause

All confidential information and intellectual property rights contained in this report belong to Protiviti
and shall remain vested with Protiviti. Any use of our confidential information and intellectual
property rights shall be for the purposes of HP PPS Asia Pacific Pte. Ltd and shall not be used in
any way that is detrimental to Protiviti's interests and/or without our written consent.
TABLE OF CONTENTS

1 INTRODUCTION 3

2 APPROACH & METHODOLOGY 3

3 AUDIT LIMITATION 3

4 EXECUTIVE SUMMARY 3
4.1 Physical Stock Count.........................................................................................3
4.2 Stock Count Summary.......................................................................................4

5 APPENDIXES 4
5.1 Appendix A – Count Sheet.................................................................................4
1 Introduction

HP has engaged Protiviti to conduct a count of HP Products held in the Norde

International Distributors Warehouse, one of HP’s Channel Partners located at Quezon
City, Metro Manila Philippines.

2 Approach & Methodology

A total number of 162 HP Product codes were subject to the stock count at the Swift
Value Warehouse, located at Norde International Distributors, at 102 Kalayaan Avenue,
Quezon City, Metro Manila, Philippines. Subsequent to the count, we performed a
reconciliation of HP Products with quantity deviations between our physical count
quantity and Extracted Stock on Hand report from their system “ACUMATICA” as of
September 19, 2019. Per confirmation with the Warehouse Manager, there were no
inventory movements subsequent to generation of the said report.

The stock count was conducted with Vinson Dagal (Warehouse Officer) of Norde
International Distributors.

Protiviti’s methodology in performing the inventory reconciliation of the HP Indigo

Products at the warehouse was completed using the following steps:

 Planned and executed a physical inventory count of HP Indigo Products included in

the list provided by warehouse staff;
 Compared the physical count results to the warehouse’s inventory records and for
any discrepancies and perform reconciliation in the system records;
 Prepared this executive summary report on the overall results of the physical
inventory count.

3 Audit Limitation
The scope of our review of the Inventory Management processes was limited to the
warehouse location and procedures as described in our job arrangement letter dated 10
January 2019 as well as the persons interviewed.

While the matters presented in this document are the result of our review, had we
performed additional procedures, other matters may have been identified that would have
been reported to you.

It should be emphasized that the process reviews, monitoring and improving internal
controls is an ongoing process. Specifically, the following limitations of our review were
noted:
 HP Products stored in sealed boxes were not opened for individual product count.
 HP Products stored on wrapped pallets were not opened for individual product
count.
 Upon arrival, the auditor was presented with a list of products to be counted. The list
was provided by Ms. Amor Baguio. The auditor was advised the list contained only
“Chargeable HP Indigo Products”

4 Executive Summary

4.1 Physical Stock Count

The stock count was conducted on September 19, 2019 at the Norde Warehouse. The
Stock Count List was provided for stock count purposes and identified 162 product codes.
All product codes were subjected to the stock count.

Confidential - This report is intended solely for the use of Hewlett-Packard (Asia Pacific) Pte Ltd. Page 3
 The stock count identified no product codes with count variances from inventory records.

4.2 Stock Count Summary

Audit date: September 19, 2019
Count date: September 19, 2019
Quezon City, Metro Manila,
Address of warehouse:
Philippines
Number of products counted 162 HP Indigo Products
Number of products with no variances 162 HP Indigo Products
Number of products with variance 0 HP Indigo Products
Stock count conducted by: Raffy M. Cabahug

5 APPENDIXES

5.1 Appendix A – Count Sheet

Confidential - This report is intended solely for the use of Hewlett-Packard (Asia Pacific) Pte Ltd. Page 4