Audit Program For Inventories

An inventory audit is a process where a business cross-checks its financial records against its inventory records. It is a vital part of the inventory management process. It is done to ensure all records are accurate and uncover any discrepancies in inventory count or financial records. The objectives of an inventory audit process are to prove the existence, rights, accuracy, and realizable value of items in a company’s inventory. An auditor uses multiple analytical procedures to verify a company’s inventory methods and confirm that the financial records match the physical counts.