Observing the Stocktaking and Destroy

To review that the inventories are existing, and the balance of inventories are correct.
To inspect the damaged, deteriorated or obsolete inventories that were approved by the Revenue Department for proper destruction.

The company must inform the date, time and name of the auditor who will participate to observe destruction and stocktaking.
In case of destruction must have the approval letter or stamped letter of acknowledgement from the tax officer.
Summarize the stocktaking result. In case of having quantity discrepancy, must explain such matter to the auditor to know also.
Issue the letter of participation for observing inventory counts and destruction.

To request for the inventory report for the end of counting period
1.1 Do the calculation test
1.2 Randomly count stocks by determine the value of the random products which the determination will be considered on a case-by-case basis
To observe for destruction / stocktaking
2.1 Observation of the stocktaking
2.2 In case of destruction, must notice how its destroyed and to ensure that all piece of products has been destroyed as well.
The inventory storage methods
3.1 Observe and inquire that the inventories are stored safely to prevent relocate without permission or the deteriorate that might happen
3.2 Observe the sign or a clear description of the product type to facilitate correct counting
3.3 In case the products are waiting for destruction, need to observe and inquire that the products are stored separately from the products in good condition
In case of destruction, need to inquire from the company that after destruction by any methods, how will the company manage with those destroyed products in the next step such as selling the remains, bury, burn, etc. and need to inquire the additional documents (if any)
Summarize the result of observation by taking note of the issues and error.