1. Obtain a listing of the inventory items maintained by the entity. 2. The listing should contain all necessary details like location of items, quantitative particulars, description etc. which would facilitate identification of the inventory items physically. 3. Carry out a physical verification of all the inventory items lying at the premise. 4. Compile the physical verification sheets and compare the same with the inventory listing given. 5. Identify discrepancies/deviations, if any and discuss the same with the management of the entity.

Inventory listing maintained in any form or manner which contains the requisite details like location, quantity etc. which would aid a physical verification.