Published 9 Apr 2024
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3 min read
What is an Inventory Audit Checklist?
An inventory audit checklist is a document inventory managers can use for inspecting their stocks, auditing them and their status, and analyzing the movement and usage of goods. It is often premade and templated prior to audits for easy use.
Importance and Benefits
For businesses that regularly deal with the movement and usage of goods, an inventory audit checklist is essential. Regular inventory audits stand out as a cornerstone practice, offering a myriad of benefits that extend far beyond mere compliance. With a dedicated checklist, this process is streamlined, thus allowing for more efficient work practices and a better process.
In particular, an inventory audit checklist helps with the following:
Managing finances and ensuring that the recorded value of inventory mirrors its physical existence
Preventing discrepancies, unnecessary spending, and workplace injuries brought on by inventory management
Reducing inefficiencies, minimizing stock-outs or overstock situations, and optimizing resource allocation, leading to improved overall operational efficiency
Complying with industry regulations, minimizing the risk of penalties and legal repercussions, and fostering a culture of transparency
Creating and implementing new auditing procedures based on previous audits done with the checklist and issues recorded
What to Include in an Inventory Audit Checklist
An inventory audit checklist typically includes fields for the following:
Date the audit was conducted
Name of person or people responsible for the inventory audit
Date of last inventory audit and who performed it
Presence and status of the inventory audit plan
Status of inventory stocks
Historical issues of the inventory, such as:
Past overstocking
Past understocking
Consumables expiring
Status of necessary sensors, monitoring devices, and tracking devices
Competency of inventory staff and managers
Status and operational status of entry and exit points and locks
Condition of receipts
Condition of inventory scales and their usage
At the end of the audit, you should include a sign-off section for the auditor-in-charge. This will then verify the validity of the checklist and the credibility of the auditor, as well as make it accessible to track possible issues and changes in the future.
How to Use It
An inventory audit checklist can be used in the following ways:
For general quality audits
For analyzing data on inventory usage, problems encountered, and supply status
For creating a more efficient and standardized inventory management system
Here is a sample inventory audit checklist in use for your reference:
