Inventory Audit Checklist

A firm may conduct an audit of the firmís inventory planning and monitoring systems. Some of the possible areas to look out for are as follows:


Description                                                  Yes                             No                           Remarks



1. Is too much money tied up in your inventory?
2. Do frequent shortages in inventory occur?
3. Does an excessive inventory discrepancy occur?
4. Is there are a lot of obsolete and/or non-moving items on stock?


1.Does the company have realistic safety stock levels?
2. Does the company have realistic reorder point levels?
3. Does the company have realistic inventory lead times?
4. Are inventory control policies and procedures adequately documented and communicated to all concerned departments?


1. Are inventory records kept up- to-date for all materials?
2. Are inventory records regularly verified by actual count?
3. Are incoming and outgoing materials / goods properly checked, authorized and logged in/out?
4. Are surplus and scrap items properly recorded and controlled?



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