What is the inventory audit process?

What is the inventory audit process?

The inventory audit process involves systematically checking and verifying the inventory records against actual stock.

Why is it important to conduct inventory audits?

Conducting inventory audits helps ensure accuracy in stock levels, reduces losses, and improves financial reporting.

How often should inventory audits be performed?

Inventory audits should be performed regularly, typically annually, but can be done quarterly or monthly depending on the business.

What methods can be used for inventory auditing?

Common methods include physical counts, cycle counting, and using inventory management software for real-time tracking.

Can you explain the cycle counting method?

Cycle counting is an inventory auditing technique where a portion of the inventory is counted on a specific schedule.