Inspection Report Example

An inspection report example is also known as an inspection statement, prepared by an authorized firm or individual either for a business or upon the request of any third party like; insurance company or an audit firm. The purpose of preparing this report is very clear as it summarizes crucial information pertaining to an individual or business who is willing to obtain certain services or to understand financial health, production quality, physical appearance, and market value of stock. This information is usually collected while submitting an application for insurance services or banking services. An inspection report example is a statement which is generated by an insurance company that basically provides information regarding details of specific risk.

Why is an Incident Report Designed?

These types of reports are designed to tell what the risks could be from a moral, physical, and financial perspective. So this form deals with the moral, financial, and physical problems of a business, entity, and employees working to run a business. It can help to identify the upcoming risks in the future and can give an idea about how to deal with the risks. For example, if there is a financial risk of employment and he or she wants to resign because the company is not paying him or her enough, by having this form it can tell the company that in the near future problems like this can appear so how company should be ready to face the risk.

Importance of Inspection Report:

An inspection report basically helps to spread the news of the risks that a company could face if it doesn’t treat its employees well or doesn’t care about their current financial status. Moreover, using this report can also be helpful in checking moral values among employees and their struggle to run a successful business. The information provided by an inspection report holds amazing significance for the employer as well as third parties. Since the information is very crucial, it must be confidential and can only be by nominated employees or individuals. In this case, an inspection report is ordered by a business part, like a bank, to know the current status of inventory which is under pledge. They will send inspection dates to the concerned department before assigning any third party, like insurance, to conduct inspection and make the partner aware of the actual and physical condition of the inventory.

Example

Now we will look at the following example to make our concept clearer. Mr. Alexander runs a business company which is famous for its great quality in the whole world. Unfortunately, Mr. Alexander never bothers to check that his employees are satisfied with their work in his company, nor did he ever pay any attention to the financial status of his business. On the other hand, many of his employees are ready to leave the company whenever they find a better job and the financial status of the company is falling each day. One day, Mr. Alexander got worried by seeing his staff misbehaving with each other and asked his assistant, Harry, to tell him if there was any inspection. Harry handed over the report, which he made by continuously watching the employees and financial status of the company. When Mr. Alexander checked the report. He was very shocked to see the number of particular risks his business was about to face. He got to know that more than ten (10) employees had given their resignation, which was pending for two months.

When he checked his financial status, he was shocked to see that in the coming six months his business will almost be finished as other businesses have taken their jobs and are providing people with much better quality than Mr. Alexander’s company. When he was aware of the risks, he suddenly made an announcement that he was increasing the salaries of all the employees that have been serving his company for more than five years. And he also made requests to check the financial status of his company for each single day. Mr. Alexander was able to protect his company from being completely destroyed with the help of an inspection report which informed him about upcoming risks to his business. If he didn’t check the report, it was also possible that he would probably lose his business forever.

Advantages of Inspection Report:

An inspection report verifies whether product specifications as mentioned in the report are being met and avoids unnecessary reengineering work later. It also confirms how much stock was pledged or available and how much is mentioned in the report. Moreover, it placed various checks on the transfer of stock from one place to others. This process can identify current and future hazards which this stock of inventory can face. Based on hazards or level of emergency, this report can suggest corrective actions. Management can monitor the suggested steps to avoid the occurrence of such kinds of hazards in the future.