Call For Business Enquiries : +91 97650 00966 / +91 98190 00511 / +91 98218 32683
Call For Business Enquiries : +91 97650 00966 / +91 98190 00511 / +91 98218 32683
Warehouse & Godown Audit · Panaji, Goa
The full stock movement cycle examined — receipts, storage, dispatch and returns — with WMS reconciliation, storage condition assessment and compliance checks for FSSAI, drug and customs bonded warehouses across Goa.
Overview
A warehouse audit is a focused examination of the operations, controls and inventory accuracy of a storage facility — a company-owned godown, a third-party warehouse, a customs-bonded store or a cold storage facility. Unlike a general inventory audit, which counts stock at a point in time, or a bank stock audit, which verifies security value for a lender, the warehouse audit examines the entire stock movement cycle: how goods are received (GRN process, quality check, quantity against purchase orders), how they are stored (conditions, racking, labelling, FIFO compliance), how they are dispatched (pick-and-pack accuracy, delivery challan completeness, weighbridge reconciliation), and how physical movements reconcile with the Warehouse Management System and the financial accounts.
For businesses in Goa with pharmaceutical storage where cold chain compliance is critical, import/export warehouses where customs duty compliance is essential, FSSAI-regulated food storage, and third-party logistics operations where client stock must be segregated and accurately tracked, the warehouse audit provides assurance that the facility is operating in compliance and that inventory records reflect physical reality. N D Savla & Associates audits warehouses for pharmaceutical distributors, trading companies, customs bonded warehouses, cold storage facilities and 3PL providers across Goa. For general count methodology, see our Inventory Stock Audit guide. For the bank-mandated component, see our Stock Audit Services guide.
Audit scope
| Warehouse audit area | What is verified | Key risk if absent |
|---|---|---|
| Stock receipts | Inward goods: quantity received vs purchase order; quality check at receipt; GRN creation and accuracy; supplier invoice matching | Overpayment to suppliers for goods not received; incorrect stock additions inflating inventory |
| Stock dispatches | Outward goods: dispatch quantity vs sales order; delivery challan accuracy; weighbridge records for bulk goods; physical seal of trucks before dispatch | Short delivery to customers; theft or diversion during dispatch; inaccurate revenue recognition |
| Closing stock balance | Physical count of all inventory at the location; reconciliation with the WMS or stock register | Misstatement of closing stock; incorrect drawing power computation for CC facilities |
| Storage conditions | Temperature and humidity for pharma, food and chemicals; racking integrity and labelling; FIFO/LIFO compliance; fire safety equipment | Stock deterioration; regulatory failure for FSSAI and DCGI-regulated goods; fire and safety risk |
| WMS / system reconciliation | Physical stock vs WMS records; WMS vs accounting system integration; stock in system but not physically present (ghost stock) and vice versa | System-physical discrepancies enabling pilferage concealment; inaccurate management reporting |
| Bonded / customs warehouse | Duty-free stock under customs bond; compliance with Customs Act provisions; verification that bonded goods have not been used domestically without paying duty | Customs duty evasion; seizure of goods; loss of warehouse licence |
Our process
We review the WMS, or the warehouse stock register, to understand the system of record for inventory movements, and map the physical flow of goods from receiving dock through quality check, storage location and picking area to dispatch dock. We identify the key control points and documents — Purchase Order, Goods Receipt Note, Delivery Challan, Sales Invoice, Weighbridge Record, Gate Pass — and, for regulated warehouses, review the licence (FSSAI, Drug Licence, Customs Bonded Warehouse approval) and its compliance requirements.
Sample POs matched to GRNs: was the quantity received consistent with the PO, and were shortages or excesses noted and documented? GRN matched to supplier invoice for quantity, quality and price. Quality check documentation reviewed where goods are subject to incoming inspection. For bulk goods — chemicals, minerals, agricultural products — weighbridge records are matched against GRN quantities.
Sample sales orders matched to delivery challans and sales invoices to confirm the correct quantity was picked and dispatched. Vehicle seal verification for high-value dispatches, to check there is a system of sealing before dispatch to prevent tampering. E-way bill compliance for dispatches above Rs. 50,000 in value, with the reference traceable on the delivery challan. Returns processing reviewed for how customer returns are received, inspected and credited, and whether pilferage risk exists at that stage.
Full physical count of stock at the warehouse on the audit date, compared to WMS records to identify ghost stock — in the system but not physically present — and unrecorded stock, physically present but not in the system. The WMS balance is then traced through to the financial accounts. We also verify location accuracy, since mislocated stock causes "not found" situations during dispatch, leading to short-picking and customer complaints.
Temperature and humidity logs reviewed for cold chain products — medicines, vaccines, dairy, chocolates — to confirm logs are maintained and actual temperature stayed within the specified range. FIFO and FEFO (First Expired, First Out) compliance verified for products with expiry dates. Labelling and segregation checked: each product and batch clearly labelled, different clients' stock segregated in 3PL warehouses, and returned or damaged stock clearly separated from saleable stock. Basic safety compliance — extinguishers, emergency exits, forklift and electrical safety — is observed and reported.
Goa has a significant pharmaceutical distribution industry serving hospitals, clinics and pharmacies across North and South Goa. These warehouses are regulated by the CDSCO and the Goa State Drug Controller under the Drugs and Cosmetics Act. Key requirements: storage at specified temperature ranges — most medicines at 15–25°C, certain vaccines and biologicals at 2–8°C cold chain; First-Expired-First-Out dispatch; separation of drug categories including controlled substances, OTC, prescription and scheduled drugs; and batch traceability records. Our pharma warehouse audit covers these regulatory requirements alongside financial and inventory accuracy.
Businesses in Goa, particularly importers at Mormugao Port, that operate customs bonded warehouses — where imported goods are stored duty-free pending clearance or re-export — must comply with the Customs Act, 1962 and the Customs (Warehousing) Regulations, 2016. The audit verifies that all goods are properly documented with the Bill of Entry for warehousing; that no goods have been taken for domestic use without paying duty; that the bond amount is adequate to cover the duty liability on stock; and that the Customs Department's warehouse register matches physical stock. Irregularities can result in duty demands, penalties and cancellation of the warehouse licence.
Frequently asked questions
An inventory audit focuses on the closing stock — counting what is physically present and reconciling it with the books. A warehouse audit is broader: it covers the entire stock movement cycle of receipts, storage, dispatch and returns, the operational controls at the facility, storage condition compliance, WMS-to-books reconciliation, and regulatory compliance for FSSAI, drug licence and customs. The warehouse audit includes an inventory count but goes well beyond it.
If you use a third-party logistics provider to store your goods, the 3PL warehouse audit is particularly critical: you have limited visibility into the operation, and your goods may be commingled with those of other clients unless your contract specifies segregated storage. A periodic audit — by your own team or an independent CA firm — verifies that the quantity of your goods reported by the 3PL matches physical reality. Many clients discover significant discrepancies, whether from system errors, poor stock management or in some cases fraud, only through an independent audit.
A temperature excursion for pharmaceutical products is a regulatory event that must be documented and investigated. Immediately: quarantine the affected stock; document the excursion with time, duration and temperature reached; conduct a risk assessment or stability study for the affected batches; decide, with the QA team and the manufacturer's guidance, whether the stock is still fit for use or must be quarantined or destroyed; and report the excursion to the manufacturer if your supply agreement requires it. Our warehouse audit covers temperature log review and can identify patterns of excursions that indicate a chronic cold chain compliance issue.
Ghost stock is inventory recorded in the Warehouse Management System but not physically present. The reverse — physically present but absent from the system — is unrecorded stock. Both are identified by comparing the physical count to WMS records. Discrepancies of this kind can enable pilferage to be concealed and make management reporting unreliable.
That all goods in the warehouse are properly documented with the Bill of Entry for warehousing; that no goods have been taken for domestic use without paying customs duty; that the bond amount is adequate to cover the duty liability on the stock; and that the Customs Department's warehouse register matches the physical stock. Irregularities can result in customs duty demands, penalties and cancellation of the warehouse licence.
Related audit services
Warehouse audit — stock receipts, dispatches, WMS reconciliation and storage condition compliance for Goa businesses. Book a free consultation with a qualified Chartered Accountant.