The Inventory Audit Checklist provides a structured approach for reviewing inventory records, stock movements, warehouse balances, and inventory transactions. It helps ensure that inventory information is accurate, complete, and properly maintained.
Inventory Audit Checklist
1. Product Master
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Verify that all products have accurate names, codes, units, and categories.
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Check for duplicate or obsolete product records.
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Verify that required product information is complete.
2. Warehouse
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Verify that all active warehouses are correctly maintained.
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Review warehouse-wise stock balances.
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Confirm that inventory is recorded under the correct warehouse.
3. Inventory Transfers
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Review all inventory transfers for the audit period.
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Verify source and destination warehouses.
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Verify transferred items and quantities.
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Check for incomplete or duplicate transfer transactions.
4. Inventory Adjustments
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Review all inventory adjustments.
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Verify adjusted items and quantities.
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Check the reason and notes for each adjustment.
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Identify unusual or unexpected stock adjustments.
5. Production Inventory Movements
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Review Material Issues – Production.
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Verify materials issued against the relevant Manufacturing Orders.
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Review Material Receives – Production.
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Verify received quantities against production records.
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Check for unmatched material issues and receipts.
6. Job Order Inventory Movements
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Review material issues and receives associated with Job Orders.
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Verify items and quantities against the relevant Job Orders.
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Check for incomplete or unmatched transactions.
7. Stock Reconciliation
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Compare system stock quantities with physical stock.
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Identify stock mismatches and investigate the differences.
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Record required stock reconciliations.
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Verify that reconciled quantities are correctly reflected in inventory.
8. Inventory Verification
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Review the Inventory Overview for closing stock balances.
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Verify inventory movements for the audit period.
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Investigate unusual stock increases or decreases.
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Confirm that identified discrepancies have been resolved.
Audit Reports
The inventory audit can be supported through:
- Inventory Overview
- Inventory Transfers
- Inventory Adjustments
- Material Issues – Production
- Material Receives – Production
- Material Issues & Receives – Job Order
- Stock Reconciliation
- Stock Mismatch