COLTON INDUSTRIES

AUDIT STOCK REPORT

for
February 2024
Table of Contents

• Cover Page………………………………………………………………..1
• Table of contents……………………………………………………….2
• Introduction: Audit Objective…………………………………… 3
Scope………………………………………………….. 3
Method………………………………………………….. 3
• Results/Findings………………………………………..………………4-10
• Non Conformities/Deviations……………………………..…….11
• Stock Balances Schedule……………………………………………12
• Recommendations/ Corrective & Prevention Actions..13-14
Introduction:
• Audit objectives:
- Verification of stock quality: Physical condition/state of the store products
- Bin card maintenance: checking the source of postings made from waybills, store/production material
requisitions and finished Production books.
- Physical Counting of store items and
- Confirmation of stock balances
• Scope
The stock taking exercise cut across the brands (Armorsil WA and Costar) for:
- Raw Materials (Liquid & Powder)
- Packaging Materials
- Labeling & Stickers
- Finished Products (Liquid & Powder) for the brands (Armorsil WA and Costar).
There was no work-in-process as at the time of stock auditing
• Method
• The Excel stock sheets, bin cards and store ledgers were the documents maintained. References were made
to the store requisitions and waybills for clarifications during the exercise. All the items were physically
counted and checked against the bin card balances made available.
 Results/Findings
i)Variance: The Physical stocks were accurate and tally with the bin card balances.
After reconciliation of Costarmix 200MH 1000L, there is a variance of 100Ltrs.
Audit findings revealed that:
-Production data were not totally captured
-Issued stocks were not totally captured
-Wrong data & date recorded in the bin card
Corrections done:
-All production & issued items were correctly analyzed, corrected & posted in the bin
card.
ii)Damaged/Caked & Expired Products:
-All damaged/caked and expired items returned from various warehouses were not
documented
-The damaged 2 tins of Zinc Primer 20A are yet to be replaced thereby giving a
variance in the bin card balance and the physical count at Costar warehouse.
 Results/Findings
More attention to the Maintenance of store requisition & waybill booklets
Loading of finished packed products on pallets that have nails which causes
damages to products.
Proper Sorting of finished products before leaving the production floor and monitoring
before shrink wrapping and transfer to finished product session.
 RECOMMENDATIONS/CORRECTIVE MEASURE OR PREVENTIVE
ACTION
The Factory Admin Operations handling the bin cards is to pay more attention to details: More careful when
capturing data from the source documents and when posting into the bin cards to avoid mistakes
For bad/damaged or expired items, the warehouse officer is to keep record for the inventory and return the accounts
copy of the waybill that accompanies the products. This is necessary in order to keep track of the total value of all
the damaged/caked products for stock valuation.
More attention to the maintenance & handling of store documents i.e. requisition & waybill booklets. To avoid
wastage of printed stationeries.
Loading of finished packed products on pallets that have nails which causes damages to products.

Proper Sorting of finished products before leaving the production floor and monitoring before shrink wrapping and
transfer to finished product session. More attention to the Maintenance of store requisition & waybill booklets
The 2 tins of zinc primer 20 A should be replaced to costar warehouse this is to correct the stock balance.

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 STOCK BALANCE
• Kindly find attached (Excel sheet ) the schedule of physical stock balances as at 29 th
February, 2024 for your review and help in determining the stock base.
 RECOMMENDATIONS/CORRECTIVE MEASURE OR PREVENTIVE ACTION –
Cont’d
4. LAGOS OFFICE:
 The Sales Admin in charge is to open bin cards for the affected 6 products to ensure that inventory
records are accurate by tracking the movement of items in and out of stock.
 Arrangement should be made to clean the office store, arrange the items and keep it clean at all times
 The sales Admin is to raise the store requisitions and waybills for the 9pcs of Aquaseal100 10kg and 1
keg of Armorfix 109 flex 20kg issued as samples to customers. This is to correct and update the bin
cards.
 The 2bags of 20kg Armorcoat 2K A with old packaging taken to the warehouse for replacement is to be
collected and returned to the office store.
5. KANO WAREHOUSE:
 For control & efficient warehouse management and improved inventory accuracy provisions are to be
made for bin cards and laptop.