It is the physical verification of the inventory. However at times, it may also include valuation of the inventory; this would depend upon the terms of reference or the engagement letter of the assignment. A stock audit report is used to document the details or information about the existing stocks of the business that has been gathered during a stock audit. Annual stock audit reports provide important details that are used by businesses in their financial statements. Emblaze Taxation and Consultancy Services offer Auditing and Stock Auditing Services in Kerala, India.