THE IMPORTANCE AND ROLE OF INTERNAL AUDIT MISSIONS OF STOCKS

In the case of entities with a significant inventory/stocks turnover, the implementation of internal audit function must be a concern of both management and shareholders, in order to prevent and detect the risk of embezzlement of these assets. This procedure must provide assurance that the inventoried stocks are correct and in a proper condition to be used according to their nature in the entity's activity. It is necessary for the entity to implement its own appropriate policies and procedures regarding these categories of assets' management and administration due to the fact that these assets present a very high risk of fraud and, in most cases, this can be provoked even by entity's employees