(i) Human Errors: Stock could have been erroneously counted or entered in the stock sheets or
stock records; stocks could be double counted etc.
(ii) Normal Losses: Expected losses due to evaporation and spillage could have occurred during
loading, reloading, issues, storage etc.
(iii) Abnormal Losses: There could be stock theft, or pilferages taking place in the organization.
(iv) Omissions: Some stocks may not have been counted.
These discrepancies can be dealt with by:
(i) Recounting: This would reveal errors previously made.
(ii) Enquiry: Seek information on the normal losses expected on each stock item.
(iii) Install Adequate Controls: The organization must install adequate system of internal
controls to prevent stock fraud.
(iv) Recheck: A thorough check of the bin cards would indicate which stocks have not been
counted.
marto answered the question on February 26, 2019 at 09:49
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