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Stock Audit · Warehouse

Warehouse Audit for operations that meet every standard.

Independent audit of warehouse operations — covering stock management, documentation controls, storage conditions, compliance, and operational risk — for manufacturers, traders, 3PLs, and WDRA-registered warehouses.

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A warehouse is far more than a storage facility. For businesses using inventory as bank collateral, the warehouse is the physical manifestation of their borrowing base. For manufacturers and traders, it is the control point for inventory movement, loss, and shrinkage. For logistics and 3PL businesses, it is the core service delivery environment. In each case, the warehouse audit provides the independent assurance that the operation is managed as represented.

NDS Advisors conducts warehouse audits that go beyond a simple stock count. We review operational documentation — goods received notes, delivery orders, stock movement records, and security logs — assess storage conditions and compliance with storage norms for the relevant product category, verify pest control and handling procedures, and evaluate the internal controls operating within the warehouse.

Our warehouse audit services cover FMCG, pharmaceutical, agri-commodity, chemical, and general merchandise warehouses — including third-party logistics providers, cold chain facilities, and WDRA-registered warehouses where compliance with Warehousing Development and Regulatory Authority norms is required.

Our Warehouse Audit Services

Warehouse Operational Audit

Comprehensive audit of warehouse operations — documentation, stock management, material movement controls, security, and housekeeping.

Goods Receipt & Dispatch Verification

Verification of goods received notes, delivery orders, vehicle logs, and gate records — confirming that physical movements match documentation.

Storage Condition Assessment

Assessment of storage conditions against the requirements of the stored product category — temperature, humidity, ventilation, pest control, and stacking norms.

WDRA Compliance Audit

Compliance audit for warehouses registered with the Warehousing Development and Regulatory Authority — covering licensing conditions, record-keeping, and operational norms.

3PL Warehouse Audit

Audit of third-party logistics providers on behalf of their clients — confirming that inventory is managed, stored, and reported in accordance with the client's requirements.

Cold Chain Audit

Audit of temperature-controlled warehousing and cold chain operations — for pharmaceutical, food, and other temperature-sensitive product categories.

Warehouse Fraud Investigation

Investigation of suspected fraud in warehouse operations — including fictitious receipts, short deliveries, collusion with transporters, and diversion of stock.

Internal Controls Review

Review of the internal control environment within the warehouse — approval workflows, segregation of duties, access controls, and CCTV utilisation.

Our Process

1

Scope & Background Review

Review of the warehouse's operations, product categories, applicable regulatory requirements, and prior audit findings to define the scope.

2

Documentation Review

Examination of goods received notes, delivery orders, stock movement registers, pest control logs, security records, and vehicle gate passes for the audit period.

3

Physical Verification

Physical inspection of stored stock — confirming quantities, storage conditions, product condition, and consistency with documentation.

4

Controls Assessment

Assessment of warehouse internal controls — staff segregation, CCTV coverage, visitor access logs, key control, and supervisory oversight.

5

Report & Recommendations

Comprehensive warehouse audit report with findings, compliance observations, control gap recommendations, and ratings by audit area.

Why It Matters

Provides independent assurance on warehouse operations
Confirms stock existence and condition for bank collateral
Identifies documentation gaps in goods receipt and dispatch
Assesses storage condition compliance for regulated products
Satisfies WDRA registration and compliance requirements
Detects and deters fraud in warehouse operations
Supports 3PL clients with independent service delivery verification
Identifies internal control weaknesses before they result in losses

Frequently Asked Questions

A warehouse audit is an independent review of warehouse operations — covering physical stock, operational documentation, storage conditions, internal controls, compliance, and security. It goes beyond a simple stock count to assess whether the warehouse is being operated safely, compliantly, and in line with the client's, lender's, or regulator's requirements.
Warehouse audits are required in several situations: by banks as a condition of inventory-backed working capital facilities, by WDRA for registered warehouse compliance, by 3PL clients verifying service delivery, by regulatory bodies for product-specific warehouses (such as pharmaceutical cold chain), and by company management for internal risk assurance purposes.
The Warehousing Development and Regulatory Authority is the statutory body that registers and regulates warehouses in India. WDRA-registered warehouses must meet specified infrastructure standards, maintain prescribed records, issue negotiable warehouse receipts, and undergo periodic compliance audits. We conduct compliance audits for WDRA-registered warehouses and help warehouses prepare for WDRA registration.
A third-party logistics (3PL) warehouse audit is conducted on behalf of a company that has outsourced its warehousing and logistics to a 3PL provider — to confirm that inventory is being stored, handled, and reported as agreed. It verifies stock quantities match the 3PL's reports to the client, that storage conditions meet contract requirements, and that documentation of receipts and dispatches is accurate.
Cold chain audits involve verification of temperature monitoring records (continuous logs, alarms, and responses), physical inspection of temperature zones, calibration records for monitoring equipment, product placement compliance, power backup adequacy, and staff training on cold chain handling procedures. We assess both compliance with regulatory requirements and the practical adequacy of cold chain controls.
Common warehouse fraud schemes include short delivery with documentation showing full quantity, fictitious goods received notes for stock that was never received, collusion between warehouse staff and transporters to divert stock during transit, theft facilitated by security staff, and manipulation of stock records to conceal shrinkage. Our warehouse audit is specifically designed to identify indicators of these schemes.

Audit your warehouse before your lender or regulator does.

Talk to our team about warehouse audit, WDRA compliance, 3PL verification, and stock management controls for your operations.