Field notes · 3 March 2026
Preparing for inventory count attendance
Inventory is often the largest current asset on a manufacturer’s balance sheet, and attendance at the physical count is a core audit procedure. Preparation on your side determines whether the visit takes half a day or spills into the following week.
Freeze receiving and shipping during the count window where operations allow. If that is impossible, keep a log of every movement after the count tag is applied so cut-off can be tested.
Train counters on dual-count or tag procedures before the auditor arrives. Ambiguous bin labels and mixed SKUs in one location are the most common sources of recount requests.
Have the perpetual records printed or exported at the count start time. Auditors select samples from the floor to the ledger and from the ledger to the floor; outdated system extracts invalidate both directions.
After the count, reconcile differences promptly and document reasons — damaged goods, consignments, or goods in transit. Those explanations become part of the working papers supporting the year-end balance.