A stock audit is the physical verification of a company’s inventory — confirming that the quantity, location, and value of stock recorded in the books of accounts matches what actually exists. In the UAE, accurate inventory verification is a critical compliance and operational requirement for businesses across retail, manufacturing, logistics, banking, and trading sectors.
MBG Corporate Services provides professional stock audit and inventory verification services across the UAE — Dubai, Abu Dhabi, Sharjah, and all emirates — helping businesses maintain accurate inventory records, reduce losses, strengthen internal controls, and comply with audit and financing requirements.
A stock audit — also known as an inventory audit — is the process of physically counting and verifying a company’s inventory against its recorded stock levels. The objective is to confirm the existence, accuracy, ownership rights, and realisable value of all items in the company’s inventory at a specific point in time.
Stock audits are required for:
Yes — in several scenarios. For businesses with inventory-based balance sheets, physical stock verification is a mandatory part of the statutory audit process under UAE audit standards. Banks and financial institutions providing inventory financing or working capital credit facilities in the UAE routinely require independent stock audit reports before disbursement and on an ongoing periodic basis. Businesses with significant inventory holdings also require regular stock audits for insurance compliance and internal governance.
We conduct independent physical counting and verification of all inventory items — raw materials, work-in-progress, finished goods, and spare parts — across your warehouses, stores, and storage locations. Our team works without disrupting your regular operations.
We reconcile physical stock counts against your accounting records and inventory management system — identifying and explaining all variances, excesses, shortages, and discrepancies. A detailed reconciliation report is provided with findings and recommendations.
We assess and verify the valuation of your inventory — confirming that stock is valued accurately in line with applicable accounting standards (IFRS), identifying slow-moving, obsolete, or damaged stock, and providing recommendations on write-down requirements.
We assist businesses in establishing or improving inventory coding systems—categorizing stock by type, location, age, and value to improve tracking, reporting, and management control.
We evaluate your existing inventory management processes and internal controls—identifying weaknesses, gaps, and risks in your stock handling, storage, and recording procedures. Our recommendations help management strengthen controls and reduce inventory losses.
We provide detailed physical status reports covering the condition of inventory—identifying damaged, expired, or deteriorated stock and quantifying its impact on the balance sheet.
We support businesses in aligning physical stock counts with accounting entries—ensuring inventory figures are accurately reflected in financial statements and management accounts.
Retail businesses face high inventory movement, shrinkage risk, and multi-location stock management challenges. MBG conducts retail stock audits across single and multi-location retail operations — verifying stock at the shelf, stockroom, and warehouse level. Our retail stock audit process minimises disruption to trading hours while delivering accurate inventory counts and shrinkage analysis.
Warehouses and logistics businesses require periodic independent stock verification to satisfy lender requirements, insurance obligations, and operational accuracy standards. MBG conducts warehouse audits across Dubai, Abu Dhabi, Jebel Ali, and all UAE free zone and mainland warehousing facilities.
Manufacturing businesses require separate verification of raw materials, work-in-progress, and finished goods — often across multiple production stages and storage locations. MBG’s manufacturing inventory audit process covers the full production cycle, identifying wastage, excess stock, and valuation issues at each stage.
Banks and financial institutions in the UAE require periodic stock audits of borrower inventory pledged as collateral for working capital loans and credit facilities. MBG conducts bank-mandated stock audits — also known as hypothecation audits or stock inspection reports — for both lenders and borrowers across all UAE emirates.
Trading companies with high inventory turnover require frequent stock verification to maintain accurate records and prevent losses from pilferage, damage, and misrecording. MBG provides periodic and annual stock audit services for trading businesses across the UAE.
MBG provides stock audit and inventory verification services across all UAE emirates:
Inaccurate inventory costs your business more than you think — in losses, financing delays, and audit qualifications. Speak to MBG’s stock audit team for a service proposal tailored to your inventory size, sector, and UAE location.
No matter your industry or business size, MBG’s business continuity management services help UAE organizations implement an effective BCP plan, and strengthen operational resilience.
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