Appendix – I

A
Internship Report
On
“A STUDY ON STOCK AUDIT PROCESS OF LAKME
SALON AT TAXOLUTION”

Submitted for partial fulfillment of requirement for the award of

degree
Of
Master of Business Administration
Of
CHHATTISGARH SWAMI VIVEKANAND TECHNICAL
UNIVERSITY, BHILAI (C.G.)

Session 2021-23

Submitted by
PRACHI JAIN
Roll No. 500107621065
Enrollment No. CB3246
MBA III Semester (Section- ‘B’)
2022-23

DEPARTMENT OF MANAGEMENT
BHILAI INSTITUTE OF TECHNOLOGY
(Seth Balkrishan Memorial), (Accredited by NBA – AICTE)
(An ISO 9001:2000 Certified Institute), Bhilai House, Durg – 491001 (C.G.)
i
 Appendix – II
A
Internship Report
On
“A STUDY ON STOCK AUDIT PROCESS OF LAKME
SALON AT TAXOLUTION”
Submitted for partial fulfillment of requirement for the award of
degree
Of
Master of Business Administration
Of
CHHATTISGARH SWAMI VIVEKANAND TECHNICAL
UNIVERSITY, BHILAI (C.G.)

Session 2021-23

Submitted by
PRACHI JAIN
Roll No. 500107621065
Enrollment No. CB3246
MBA III Semester (Section- ‘B’)
2021-23

DEPARTMENT OF MANAGEMENT
BHILAI INSTITUTE OF TECHNOLOGY
(Seth Balkrishan Memorial), (Accredited by NBA – AICTE)
(An ISO 9001:2000 Certified Institute), Bhilai House, Durg – 491001 (C.G.)
ii
 Appendix – III

DECLARATION

I the undersigned solemnly declare that the report of the Internship Report
work entitled “A STUDY ON STOCK AUDIT PROCESS OF LAKME
SALON AT TAXOLUTION , is based my own work carried out during the
course of my study under the supervision of Chetan Dev Sahu.

I assert that the statements made and conclusions drawn are an outcome of the
work. I further declare that to the best of my knowledge and belief that the
report does not contain any part of any work which has been submitted for the
award of any other degree/diploma/certificate in this University or any other
University.

(Signature of the Candidate)

PRACHI JAIN

Roll No.: 500107621065

Enrollment No.: CB3246

iii
 Appendix –IV

CERTIFICATE BY THE COMPANY

iv
 Appendix –V

CERTIFICATE BY THE EXAMINERS

This is to certify that the project entitled

“A STUDY ON STOCK AUDIT PROCESS OF LAKME SALON AT
TAXOLUTION”

Submitted by

Name: Prachi Jain Roll No. :500107621065 Enrollment No.: CB3246 Has
been examined by the undersigned as a part of the examination for the award of
Master of Business Administration degree of Chhattisgarh Swami
Vivekanand Technical University, Bhilai (C.G.).

Name & Signature of Name & Signature of

Internal Examiner External Examiner
Date: Date:

Forwarded by
Head
Department of Management

v
 Appendix – VI

ACKNOWLEDGEMENT

First of all, I would like to thank Mrs. Judith Gomes my supervisor, for providing me with
invaluable guidance in preparation of this internship report. Without her help and support, I
could never have finished this report.
I am very much thankful to the TAXOLUTION COUNSULTANCY FIRM. They provided me
with much needed information and other required assistance in order to prepare this report.
I also wish to thank and give the due respect to my family and friends for their cordial support
and help they offered throughout the process of preparing the whole report. Especially I want
thank those person who were our batch mates. They gave their valuable time and suggestion.
I want to give thank to all these persons.

(Signature of the student)

Name: Prachi Jain

Roll No.- 500107621065
MBA - IIIRD
SEMESTER Section – ‘B’

vi
 Appendix – VII

1 List of Symbols

S. No. Particular Symbol

1 AND &
2 COMMA ,
3 POINT .

vii
 Appendix – VIII

2 List of Abbreviations

S. No. Particular Abbreviation

1 Income tax IT
2 Identification ID
3 Company Co.
4 Number NO.

viii
 Appendix –IX

3 Table of Content

S. No. Particular Page No.

1 INTRODUCTION OF AUDIT 11-14
2 ABOUT THE INDUSTRY 15-16
3 ABOUT THE COMPANY 17-25
 Organisational structure
 Department of firm
 Services offered by firm

4 SWOT ANALYSIS OF THE FIRM 26-27

5 OBJECTIVE OF THE INTERNSHIP 28
6 OVERVIEW OF AUDIT PROCESS 30-46
7 COMPETITIVE SCENARIO 47-48
8 METHODOLOGY 49
9 LIMITATION 50-51
10 RESULT AND FINDINGS 52
11 CONCLUSION 53
12 BIBLIOGRAPHY 54
13 REFERENCE 55

ix
 Appendix – X

3 List of Figures

S. No. Particular Page No.

1 Fig.1 18
2 Fig.2 35
3 Fig.3 36
4 Fig.4 37
5 Fig.5 38
6 Fig.6 38
7 Fig.7 39
8 Fig.8 39
9 Fig.9 40
10 Fig.10 40
11 Fig.11 41
12 Fig.12 41
13 Fig.13 42
14 Fig.14 43
15 Fig.15 44
16 Fig.16 45
17 Fig.17 46

x
 AUDIT

An audit is an independent examination of an organization's financial statements, records and

operations to assess the accuracy and completeness of the information provided and to ensure that
the organization's financial statements comply with accounting standards and regulations.
Auditing is a process of gathering and evaluating evidence to provide assurance that the financial
statements are free from material misstatement, whether caused by fraud or error. The primary
goal of an audit is to provide assurance to stakeholders, such as investors, creditors, and
regulatory bodies, that the financial statements are reliable and provide a true and fair
representation of the organization's financial performance and position. Audits can be performed
by internal or external auditors, depending on the organization's requirements. Auditing can be
done for different types of entities, such as for-profit companies, non-profit organizations,
government agencies, and more.

TYPES OF AUDIT

There are several types of audits, each with a specific purpose and focus. Some of
the most common types of audits include:

 INTERNAL AUDIT

Internal audit is an independent, objective assurance and consulting activity designed to add value and
improve an organization's operations. It helps an organization to accomplish its objectives by bringing a
systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control,
and governance processes.

An internal audit is carried out by the organization's own staff, rather than by an external auditor. The
internal audit function is typically part of the organization's overall governance structure, and reports
directly to the board of directors or a similar governing body.

11
 EXTERNAL AUDIT

External audit is an independent examination of an organization's financial statements, records, and

operations by an external, independent auditor. The primary goal of an external audit is to provide
assurance to stakeholders, such as investors, creditors, and regulatory bodies, that the organization's
financial statements are accurate and provide a true and fair representation of the organization's
financial performance and position.

 STOCK AUDIT

Stock audit is a part of the overall financial audit process. It is an independent examination of a
company's inventory, to ensure that the company's financial records accurately reflect the physical
inventory. It is also known as an inventory audit, and it is typically performed by external auditors
or internal auditors. The main goal of stock audit is to ensure that the company's inventory is
accurately reflected in the financial records, and that there are no discrepancies or errors in the
inventory management system. Stock audit helps to identify any discrepancies or errors in the
inventory management system, and to recommend changes or improvements to the system to
improve accuracy and efficiency.

 FINANCIAL AUDIT

A financial audit is an independent examination of an organization's financial statements, records, and

operations. The primary goal of a financial audit is to provide assurance that the organization's financial
statements are accurate and comply with accounting standards and regulations.

 OPERATIONAL AUDIT

An operational audit is an examination of an organization's internal controls, processes, and systems.

The primary goal of an operational audit is to identify inefficiencies and areas for improvement in the
organization's operations.

12
 COMPLIANCE AUDIT

A compliance audit is an examination of an organization's compliance with laws, regulations, and

industry standards. The primary goal of a compliance audit is to ensure that the organization is in
compliance with all applicable regulations and laws.

 IT AUDIT

An IT audit is an examination of an organization's information technology systems, processes, and

controls. The primary goal of an IT audit is to ensure the security and integrity of the organization's IT
systems and to identify potential vulnerabilities.

 ENVIRONMENTAL AUDIT

An environmental audit is an examination of an organization's compliance with environmental

regulations and laws. The primary goal of an environmental audit is to ensure that the organization is in
compliance with all applicable environmental regulations and laws.

 FORENSIC AUDIT

A forensic audit is an examination of an organization's financial records and operations to identify

fraud or financial misconduct. The primary goal of a forensic audit is to identify and investigate any
potential fraud or financial misconduct.

 PERFORMANCE AUDIT

A performance audit is an examination of an organization's programs, processes, and activities to assess

their effectiveness, efficiency, and economy. The primary goal of a performance audit is to provide
recommendations for improvement.

13
 CYBERSECURITY AUDIT

A cybersecurity audit is an examination of an organization's information security controls, processes

and systems. The primary goal of a cybersecurity audit is to ensure the security and integrity of the
organization's IT systems and to identify potential vulnerabilities.

14
 ABOUT THE INDUSTRY

The outsourcing of stock audit services is a growing industry, as more companies look to improve their
inventory management and financial reporting while reducing costs.

Some of the key players in the industry include large accounting firms and management consulting
firms, as well as specialized companies that provide only stock audit services.

The industry has been growing as businesses look for ways to improve their inventory management and
financial reporting while reducing costs. In addition, many companies are turning to outsourcing as a
way to access specialized expertise and technology, and to free up internal resources for other important
tasks.

The demand for stock audit services is expected to continue to grow in the future, driven by increasing
regulatory requirements and the need for more accurate and efficient inventory management.

The industry is highly competitive and companies need to constantly innovate and improve their
services to attract and retain clients.

Companies which are providing stock audit services are also required to comply with the laws and
regulations of the countries where they operate.

The outsourcing of stock audit services is a growing industry, as more and more companies are
choosing to outsource this function to independent firms. This can be attributed to a number of factors,
including the need for objective and unbiased assessments of inventory management systems, the desire
to free up internal resources for other tasks, and the need for specialized expertise and technology.

Stock audit outsourcing firms typically employ teams of experienced auditors who are trained to
conduct stock audits in accordance with industry standards and regulations. They may also have
specialized expertise in specific types of inventory, such as retail inventory or inventory in a
manufacturing facility.

15
The industry includes a variety of players including audit firms, medium-sized and small accounting
firms, and independent consultants.

Some of the key players in the industry include large accounting firms, such as Deloitte and PwC, as
well as smaller specialized firms that focus exclusively on providing stock audit services. The industry
is also populated by regional and local firms that provide stock audit services to companies in their
specific geographic area.

The industry is highly regulated and auditors must comply with accounting standards and regulatory
requirements in the country they operate. Stock auditors are usually certified or licensed by professional
bodies such as Institute of Chartered Accountants of India (ICAI) in India, American Institute of
Certified Public Accountants (AICPA) in the US and Institute of Chartered Accountants in England and
Wales (ICAEW) in UK.

16
 ABOUT THE COMPANY

Fig. 1

Taxolution consultancy is one of the top trending and leading businesses in the field of Accounting
category in Durg. It is Also known as Accountants, Accounting Facilities, Accounting Services,
Accounting Outsourcing Facilities, Accounting Outsourcing Services and much more. location, address,
phone number, contact number, contact details, reviews and ratings, images of Taxolution consultancy,
is clearly mentioned in its website.

Taxolution is a Private company which works as a middle man between different companies. It is an
outsourcing company which deals with the audit of different companies . It also perform various
activities along with auditing .

17
Taxolution consultancy took a good position in the accountant category in Durg. If you live in Durg or
some where near to Durg than it will be all in one destination for you. In @Model.PlaceCategory.Name
Taxolution consultancy established a good reputation while working Over the course of its history. To
get the success on there business customer satisfaction is necessary and this company trying to achieve
this while proposing there products and services to the customer. This company has people who are
dedicated to their respective roles and work hard to achieve the shared vision and broader goals of the
company. In the near future, this business aims to expand its range of products and services and serve a
larger customer base. In Durg, this company has a high status in Durg. you can reach this destination
easily as Taxolution consultancy can be found in various navigation tools like: Google map. It is known
to offer superior services in the following categories: accountant, accounting services, accounting
services outsourcing services.

Taxolution deals with stock audit of different companies like –

 Tata
 Lakme
 Rosmerta
 Nokia
 L.G.
 Whirlpool
 ETC

 MISSION - To help clients unlock their potential and expand their horizons. Every member of our
team is passionate about aiding the clients out of their proverbial boxes and performs within the
confines of their special and unique abilities.

 VISION - To be a leading professional organization providing efficient and prompt services, to act
with fairness, integrity and diligence and to be socially responsible .

18
 ORGANISATIONAL STRUCTURE

Organizational structure is hierarchy followed by the firm. Following is the organizational

hierarchy of the firm:

 Partners

 Directors

 Senior Managers

 Accountants

 Senior trainee students

 Junior trainees

Various levels of the firm have different functions. Partners are often the founders of the firm. The
founders of Taxolution counsultancy firm are Chetan Dev Sahu , Siddharth Sahu and Dileep
Tiwari. They are main heads of the organization who sign and issue audit reports and other various
reports on behalf of the firm.

Before approving the audit file it is discussed with the senior managers of the firm.They usually
manage the field work done by the Stock Auditors . Senior managers are the CharteredAccountants
having more than 10 years of work experience.

Field work and the necessary information collection and implementation of the policies by
adopting the changes in rules and regulations is the main responsibility of the senior trainee and
junior trainees. They use different kind of techniques for error and fraud detections.

19
 DEPARTMENTS OF FIRM.

All the offices consist of different departments who basically handle their respective
functions. The major departments of the firm are as follows:

AUDIT AND ASSURANCE DEPARTMENT

Firm provides wide range of services to its clients in the form of performing audits of financial
statements of limited companies, NGOs, and partnerships. Firm also performs special services
such as management audits, internal audits and investigations. The main focus of audit is
business issues and the matters that can impact the financial statement., while also retaining
the basic audit procedures that test the information contained in the financial statements.
Services are aimed to comply with the legal requirements as defined under the various laws
and regulations. In doing so firm not only identify the non-compliances but also assists clients
in rectifications, designing remedial measures and provides guidance to adhere with the laws
and regulations. Firm always endeavor to meet reporting deadlines as set out by the laws and
regulations or as mutually agreed with clients, without compromising the professional, legal
and ethical requirements.

Firm’s emphasis is on delivering high quality services to clients, adding value tot their business
through identification of existing and potential control risks and suggesting best possible
measures in the given circumstances. Firm always places priority to deploying audit terms to
clients who are well equipped with the specific industry knowledge, experience and are
professionally sound.

20
 TAX AND CORPORATE DEPARTMENT

Firm delivers taxation services to clients and assist them in obtaining optimal tax benefits
available under the laws. Firm also assist the clients to comply with the tax rules and regulations
and always keep them updated with the latest developments and amendments. Tax personnel
are qualified professionals, experienced and knowledgeable. Who maintain a comprehensive
tax library to provide ready references and timely solutions in complex solutions. Firm provides
a comprehensive range of tax services which includes:

 Preparation and submission of annual tax returns.

 Compliance se services.
 Tax advisory services
 Representation and litigation with tax authorities
 Personal income tax service

COMPUTER DEPARTMENT

Department handles all the computer related matters and assists other departments in working
properly and efficiently. Department deals with online filing of returns of income for tax
department and finalize audit reports in proper format on a presentable manner. It deals with
networking of computers in office and all other problems which may be faced by computer
users time to time.

21
 CORRESPONDANCE DEPARTMENT

This department deals with the accounting aspect of the firm, it helps with updating the dta
entry on the software used by the firm. The software used here by the firm is Tally. Making
sure that all the transactions, costs, opening and closing balances match with the books. It also
handles all the correspondence of the firm by sending the solicited and unsolicited information
from time to time. Interacts with the clients to resolve policy and customer issues.

Hierarchy adopted by the Taxolution counsultancy is in accordance with the legal structure
firm shall have.

22
 SERVICES OFFERED BY THE FIRM

GST REGISTRATION

GST registration of business is to enable selling of goods with turnover value beyond a certain
limit. Limit may vary from state to state. It is also necessary to get GST Input Tax Credit.

PROJECT FINANCING

Companies need funds to grow their business. Experienced CA can prepare project report for
loan financing to ensure that you get best eligible amount in shortest time.

GST RETURNS

GST returns to be filed on periodic basis by business to provide information about value of
turnover & total GST liability & mode of payment. Delays attract penalty.

TDS RETURN

Income tax act requires TDS deducted file the TDS return on periodic basis by mentioning
TAN No.

INCOME TAX (SALARIED/BUSINESS)

Income tax return of salaried employee can be filed with the help of the Form 16 & Form 16A.
Form 26 AS will help you in getting information about TDS on salary. Income Tax returns
filing is requirement of Income Tax Act for companies/businesses. Tax audit report helps in
compliance of income tax laws.

TALLY ACCOUNTING

Tally is most used accounting software. Small and medium sized business can take services
from CA firms who allocate accountants to handle accounting.
23
 STATUTORY AUDIT

Get the statutory audit, it is compulsory for any type of business.

STOCK AUDIT

A stock audit is an examination of a company's inventory to ensure that the physical count of items
matches the recorded amount in the company's financial records. The purpose of a stock audit is to
identify any discrepancies or errors in the inventory management system, and to ensure that the
company's financial statements accurately reflect its inventory levels. Stock audits can be
conducted internally by the company's own employees, or externally by an independent auditor.
The audit process typically includes physically counting the items in the inventory, comparing the
count to the recorded amounts in the financial records, and identifying and investigating any
discrepancies that are found.

INTERNAL AUDIT

Internal audit and internal financing control testing is needed as per companies act.
Internal audit is not as compulsory as statutory audit.

AUDIT Internal audit is not as compulsory as statutory audit.

Audit involves the following:

1. In-depth study of existing systems, procedures and controls for proper understanding.
Suggestions for improvement and strengthening.

2. Ensuring compliance with policies, procedures and statutes.

3. Comprehensive review to ensure that the accounts are prepared in accordance with

24
Generally Accepted Accounting Policies and applicable Accounting Standards.

4. Checking the genuineness of the expenses booked in accounts.

5. Reporting inefficiencies at any operational level.

6. Detection and prevention of leakages of income and suggesting corrective measures to

prevent recurrence.

7. Certification of the books of account being in agreement with the Balance Sheet and Profit
and Loss Account.

8. Issue of Audit Reports under various laws.

25
 SWOT ANALYSIS OF THE FIRM

Here is the swot (strength, weakness, opportunity and threats) analysis for the Taxolution
Counsultancy Firm.

 STRENGTH

 Taxolution counsultancy provides various services to its clients which includes Tally
accounting, auditing, tax consultation, TDS return, GST returns etc.
 One of the strengths of Taxolution counsultancy is that, it has both experienced and new
employees in the firm which help them provide the services with the experience of senior
members and with the market analysis of the young employee’s point of view.
 One of the best qualities of Taxolution counsultancy is that they provide quality of work and
training to both its clients and to their auditors.
 WEAKNESS

 One of the weaknesses for Taxolution counsultancy is high competition. There are many
firms associated with similar work profile.
 Less no. of staff members.

 Change in Government policies and procedures may act as threat for company.

 OPPORTUNITIES

 In comparison to their competitors, Taxolution counsultancy has an edge in making an

accurate and error free report.
 They have good opportunity to introduce the ISO standards training programwhich no
other firm is giving to its customers.
 Try to adopt to new technologies which their competitors are not using.

 THREATS

 Rapidly increasing costs, growing competitions and decreased client acquisition and
retention are some of the threats.
26
 OBJECTIVE OF THE INTERNSHIP

I choose to work with Taxolution counsultancy. During this internship I have learned many new
skills. Before doing this internship I only had theoretical knowledge about the working of a Stock
Audit. But this internship helped me apply that theoretical knowledge to practical use by working
with the firm.
This internship has to gives me the understanding of business and also about the elements of
strategic thinking, planning and implementation, and how these things are applied in a real-
world organization environment.

Following are the objectives that I have in my mind before working as an internee:

 To understand general audit SOP followed by the company.

 To study and learn the stock audit process .

 To learn how to report various audit related document.

27
 JOB DESCRIPTION

I have tried my best to enhance my abilities and apply the knowledge that I gained during the
studies.

A person who arranges auditors through pan India, also known as an auditor coordinator,
is responsible for coordinating and scheduling audit assignments for a team of auditors across the
country. Here are some key responsibilities of an auditor coordinator:

1. Coordinating and scheduling audit assignments for a team of auditors across the country,
ensuring that they are properly staffed and have the necessary resources to complete their
assignments.

2. Managing and maintaining an audit schedule, ensuring that all audits are completed on time and
within budget.

3. Communicating with clients to gather information about their audit needs, and working with
auditors to develop an appropriate audit plan.

4. Identifying and recruiting new auditors to join the team, and providing training and support to
new auditors as needed.

5. Reviewing and analyzing audit reports, and providing feedback to auditors on their performance.

6. Coordinating with other departments, such as finance and operations, to ensure that audit
information is accurate and up-to-date.

7. Keeping up to date with industry standards and regulations, and ensuring that all audit processes
and procedures comply with these standards.

8. Communicating the findings of the audit to management and stakeholders, and providing
recommendations for improvement.

28
 9. Assisting in the development and implementation of new audit procedures and processes to
improve efficiency and accuracy.

10. Continuously monitoring and evaluating the audit process to ensure that it remains effective and
efficient.

Software used during internship:

 MS office

 MS Word

 Zoho mail

 MS Excel

29
 OVERVIEW OF STOCK AUDIT PROCESS

A stock audit is an examination of a company's inventory to ensure that the physical count of items
matches the recorded amount in the company's financial records. The purpose of a stock audit is to
identify any discrepancies or errors in the inventory management system, and to ensure that the
company's financial statements accurately reflect its inventory levels. Stock audits can be conducted
internally by the company's own employees, or externally by an independent auditor. The audit process
typically includes physically counting the items in the inventory, comparing the count to the recorded
amounts in the financial records, and identifying and investigating any discrepancies that are found.

General process of stock audit

A stock audit process for a company would involve the following steps:

1. Planning: The auditor will review the company's inventory management procedures and
systems, and plan the audit in order to identify any potential issues or areas of concern.

2. Physical Count: The auditor will conduct a physical count of the inventory, comparing the count
to the recorded amounts in the financial records.

3. Identification and Investigation of Discrepancies: The auditor will identify any discrepancies
between the physical count and the recorded amounts, and investigate the reasons for these
discrepancies.

4. Analysis of Inventory Data: The auditor will analyze the inventory data to identify trends and
patterns that may indicate inefficiencies or errors in the inventory management system.

5. Recommendations for Improvement: The auditor will provide recommendations for changes or
improvements to the inventory management system to improve accuracy and efficiency.

6. Communication of Findings: The auditor will communicate the findings of the audit to
management and stakeholders, and provide recommendations for improvement.

30
7. Follow-up and monitoring: The auditor will follow-up and monitor the implementation of the
recommendations.

8. Compliance: The auditor will ensure that all audit processes and procedures comply with
industry standards and regulations.

31
 LAKME SALON
Lakmé is an Indian cosmetics brand, owned by Hindustan Unilever. It was named after the
French opera Lakmé, which itself is the French word for goddess Lakshmi who is renowned for her
beauty. It was started in 1952 as a 100% subsidiary of Tata Oil Mills, famously after Prime
Minister Jawaharlal Nehru was concerned that Indian women were spending precious foreign exchange
on beauty products and persuaded JRD Tata to manufacture them in India. Simone Tata joined the
company as director and went on to become the chairperson. In 1998, Tatas sold their stake in Lakmé to
Hindustan Unilever for ₹200 crore (US$48.46 million).
Lakmé mainly sells coloured cosmetics products such as lipsticks, eyeliners and skincare cream. In
December 2018, it launched its e-commerce platform. As of 2021, Lakmé also runs 485 beauty
salons under Lakmé Lever. The company is the title sponsor for Lakme Fashion Week (LFW), a bi-
annual fashion week which takes place in Mumbai.
Lakmé has Shraddha Kapoor, Kajol Devgn, Kareena Kapoor, and Ananya Pandey as brand
ambassadors. In The Brand Trust Report 2012, Lakme was ranked 104th among India's most trusted
brands and following year it was ranked 71st on the list. In 2014, Lakme was ranked 36th among India's
most trusted brands according to the Brand Trust Report 2014.

Type Private

Industry Personal care and Beauty salon

Founded 1952; 71 years ago

 J.R.D Tata
Founders
 Simone Tata

Headquarters India

Area served  India

 Nepal

Key people Pushkaraj Shenai (CEO, Lakmé Salon)

Products Cosmetics, beauty products,

and Salon services

Parent  Tata Group (1952–1998)

 Hindustan Unilever (1998–present)

Website lakmeindia.com

32
 LAKME SALON STOCK AUDIT PROCESS

As a stock auditor coordinator I was responsible for coordinating and scheduling stock audit
assignments for a team of auditors, ensuring that all audits are completed on time and within budget.

PROCESS

1. Coordinating and scheduling stock audit auditors through different part of India, ensuring that
they are properly staffed and have the necessary resources to complete the audits .

2. Managing and maintaining an audit schedule, ensuring that all audits are completed on time and
within budget.

3. Communicating with clients to gather information about their audit needs, and working with
auditors to develop an appropriate audit plan.

4. Identifying and recruiting new auditors to join the team, and providing training and support to
new auditors as needed.

5. Reviewing and analyzing data and products collected by the auditor , and providing feedback to
auditors on their performance.

Following data are collected by the auditor during stock audit of different Lakme Salon –

 Atleast 5 Non SOP & 15 SOP products

 Registration certificate

33
 Fig .2

34
 Public performance license

Fig .3

35
 Indian Performing Right Society Limited

Fig .4
36
 First , second , last used and last unused pages of bill book

Fig.5

Fig.6
37
 Fig.7

Fig.8

38
 CC TV phootage of front and back of the store .

Fig.9

Fig.10
39
 Fig.11
 List of Expired products .

Fig.12

40
 Photos of dumping the expired products

Fig.13

41
 Fig.14

42
 Fig.15
43
 GSTR-3B

Fig.15

44
 Fig .16
6. Coordinating with other departments, such as finance and operations, to ensure that audit
information is accurate and up-to-date.

7. Keeping up to date with industry standards and regulations, and ensuring that all audit processes
and procedures comply with these standards.

45
8. Communicating the findings of the audit to management and providing recommendations for
improvement.

9. Assisting in the development and implementation of new audit procedures and processes to
improve efficiency and accuracy.

10. Continuously monitoring and evaluating the audit process to ensure that it remains effective and
efficient.

46
 Company Competitive Scenario

In general, Taxolution counsultancy firm is a reputed and well know company but the outsourcing of
audit services has become increasingly popular in India in recent years, as companies look to reduce
costs and improve efficiency. There are many audit firms in India that offer outsourcing services,
including both large international firms and smaller local firms. The competition among these firms is
likely to be intense, as they all compete for the same clients and projects. Factors that can affect a
company's competitiveness in the outsourcing audit market include its reputation, its track record of
delivering high-quality work, its pricing, and its ability to scale its services to meet the needs of clients.

Some key factors that can affect the competitive scenario for outsourcing audit companies include:

1. Industry expertise: Companies that specialize in a particular industry, such as healthcare or

finance, may have a competitive advantage over companies that offer more general audit
services.

2. Location: Companies that are located in regions with a high concentration of businesses in a
particular industry may have a competitive advantage over companies located in other regions.

3. Size and resources: Larger audit firms may have more resources and a wider range of services to
offer, which can give them a competitive advantage over smaller firms.

4. Reputation: Companies with a strong reputation for providing high-quality audit services may be
able to attract more clients than companies with a less established reputation.

5. Cost: Companies that offer competitive pricing for their services may be able to attract more
clients than companies with higher prices.

6. Technology: Companies that make use of new technologies like AI and automation, can be more
efficient and cost-effective, and can have a competitive advantage over companies that don't.

47
 7. Client base: Companies that have a diverse client base, including well-known and reputable
organizations, may have a competitive advantage over companies that serve mostly small or
unknown clients.

Overall, the competitive scenario for outsourcing audit companies is likely to change over time as new
companies enter the market and existing companies adapt to changing industry conditions.

48
 Methodology

SOURCES OF DATA COLLECTION

Secondary Data: Secondary Data was collected through auditors and stores.

Understanding the risk of micro sized business entities wholly or partially owned by the client by
arranging local auditors at those areas and making them proficient regarding the procedures of audit.

Supervise audit cycle and ensuring smooth operations of audit by communicating various information
related to the procedure to be followed during audit.

49
 Limitation of the report

In performing this report lack proper practical knowledge is greatly has greatly influenced my
performance.

Various confidential matters, forms, report, were not disclosed to me from company.

Improper combination among various department.

Besides this there are many limitation:

Coordinating auditors from different states creates a number of limitations and challenges. Some of
these limitations are:

1. Time zone differences: Coordinating with auditors in different states can be difficult due to time
zone differences, which can make it challenging to schedule meetings and communicate
effectively.

2. Language barriers: Auditors from different states may speak different languages, which can
make it difficult to communicate effectively and understand the results of the audit.

3. Different regulations: Auditors from different states may be subject to different regulations and
laws, which can make it challenging to ensure that the audit is conducted in compliance with all
applicable regulations and laws.

4. Cultural differences: Auditors from different states may have different cultural backgrounds and
work styles, which can make it challenging to coordinate their efforts and ensure that the audit is
conducted effectively.

5. Lack of local knowledge: Auditors from different states may not be familiar with the local
business environment, regulations, cultural norms, and economic conditions, which can limit
their effectiveness and the quality of the audit.

50
6. Communication and coordination difficulties: Coordinating with auditors in different states can
be difficult due to communication and coordination difficulties that may arise due to the distance
and different locations.

51
 RESULTS AND FINDINGS

The audit help us to identify discrepancies between the physical inventory and the financial records,
indicating errors or inaccuracies in the inventory management system. These discrepancies may arise
from errors in counting, recording, or reporting of inventory, or from fraud or theft.

The audit help us to identify issues with overstocking or understocking of inventory, which can have a
negative impact on the company's financial performance and inventory turnover.

The audit help us to identify inventory that is obsolete or slow-moving, which can also have a negative
impact on the company's financial performance.

The audit help us to identify a lack of proper documentation or record-keeping, which can make it
difficult to track inventory and can increase the risk of errors or discrepancies.

The audit help us to identify inefficiencies in the inventory management process, such as lack of proper
controls, inadequate communication, or insufficient staffing.

The audit help us to identify opportunities for cost savings, such as reducing inventory carrying costs,
improving inventory turnover, or reducing waste and fraud.

Delivering unbiased and clear audit reports to the leading companies along with all the documentations
and proofs backing the facts and content of those particular findings in such audit reports .

52
 CONCLUSIONS

Taxolution gave a chance to understand stock audit of lakme salon. And also helps to build contact,
enhance communication skill, work in a team and drafting audit reports.

Taxolution respects the dignity and diversity of individuals, competes fairly in accordance with law and
business ethics , makes customer satisfaction our top priority , makes efforts for the improvement of the
quality of life of our employees , pursue eco-friendly management , builds relationships of co-existence
and co-prosperity with business partners.

53
 BIBLIOGRAPHY

 https://en.wikipedia.org/wiki/Lakm%C3%A9_Cosmetics

 https://www.investopedia.com/terms/a/audit.asp#:~:text=There%20are%20three%
20main%20types,included%20in%20the%20audit%20report.

 https://omnipack.com/blog/what-is-a-stock-audit-and-how-is-it-
performed#:~:text=Simply%20put%2C%20a%20stock%20audit,available%20at%
20the%20st

 http://taxolution.co.in/about/

54
 REFERENCE

Founder and CEO - Chetan Dev Sahu

Contact - 917000784214

Email id – chetan@taxolution.co.in

55