Last week was our year-end stocktake for FYE 30/6/2024.

A yearly ritual.

Yes, tiring. Tedious. Time-consuming especially during this peak.

But necessary. Very necessary.

Until one question from an experienced candidate almost made me disbelief in shock.

We were preparing the stocktake forms, logistics, and team briefing. This candidate, who joined us not long ago, approached me with a confident smile.

“Boss, why stocktake now? So peak period. My ex-firm never do one leh.”

I blinked.
Once.
Twice.
Three seconds of silence.

I wasn’t sure whether to laugh, cry, or sigh.

This guy has five years of experience in audit.

If you’re in audit, you know.
ISA 501.

If the client has inventory material to the financial statements, attendance at physical inventory count is mandatory.

Not optional.
Not “see mood.”
Not “if the firm got time.”
Mandatory.

So I smiled.
And I explained nicely.

“Stocktake is not just some old-school practice. It’s part of ISA 501. We must attend the count. We must observe procedures. We must perform test counts. We must evaluate management’s instructions and controls.”

He looked surprised.

Still unconvinced.
“But my ex-firm never go one. For five years we never attend any stocktake.”

Ahh… now I understand.

It’s not that he’s lazy.
It’s not that he’s trying to avoid the workload.

It’s just that…
He really didn’t know.

I continued.

“Do you know what is Practice Review by MIA?”

He paused.
“Er… not really.”
Okay. Now this is serious.

I took out my laptop, opened MIA’s official website, and showed him.

I explained how Practice Review is like a report card for audit firms.

They check if we comply with International Standards on Auditing (ISA).

They inspect working papers, audit judgments, procedures performed, risk assessments, documentation, and yes…

Whether or not we attend stocktake when inventory is material.

One day, Practice Review will come knocking.

And I’ll have to face the music.

Not my staff.
Not my ex-boss.
Not my client.
Me.

Confucius once said,
知之为知之，不知为不知，是知也。
“To know what you know and to know what you don’t know … that is real knowledge.”

This candidate’s question shocked me.
It revealed a deeper problem in our profession.

Some firms cut corners.
Some juniors grow up never seeing proper audit work.
Some seniors rise without ever understanding the “why” behind the “what.”

And then they come out, thinking they are “experienced.”

But experience without knowledge is like a F1 car without fuel.
Looks shiny.
But goes nowhere.

PS : Authored by Mr Koh Teck Peng, the group principal, in his personal LinkedIn post