• Verify that the value of stock as given is not inclusive of previous year‘s closing stock. This would entail ascertaining the value of opening stock (if any) and subtracting from this, the value of units produced in the current year.
• Check that no sales figure for finished goods (awaiting collection) is included into stock.
• Ensure that steel components ordered for, but not yet delivered (in-transit) from the suppliers, are recorded in the purchases journal in the appropriate period, and not as part of closing stock.
• From the duplicate book of stores ledger cards, obtain the last few (may be five) stores receipt forms recorded immediately before year end and trace to invoice to ensure the invoice is dated before year end.
• Verify that own material is not included as stock.