Auditing Inventory

Auditing inventory involves reviewing and verifying the physical stock of goods a business has on hand. This process ensures that the recorded amounts match what is actually present, helping to identify discrepancies due to errors or theft. During an audit, items are counted and assessed for their condition, and financial records are checked. This practice is crucial for accurate financial reporting, effective management, and maintaining the integrity of a business’s operations. Regular inventory audits help companies make informed decisions about purchasing, sales, and production.