Our Inventory Audit Work Program is a detailed guide designed to enhance the accuracy and efficiency of inventory management through systematic auditing practices. It outlines methods to identify discrepancies between physical inventory and recorded data, address risks like theft and obsolescence, and ensure compliance with regulatory standards. This tool emphasizes improving inventory control processes and provides organizations with actionable steps to maintain accurate financial statements and optimize operational efficiency. It serves as a customizable framework for organizations to tailor audit procedures to their unique needs while continuously monitoring and refining their inventory management strategies.

This document comprises three samples that address different aspects of the inventory audit process. Sample 1 focuses on the preparatory stages, such as planning, fieldwork and report issuance, ensuring foundational accuracy. Sample 2 evaluates controls over inventory functions like cycle counting and customer returns, while Sample 3 examines procurement, storage and management processes, offering insights into optimizing supply bases and forecasting requirements.

Audit steps include:

• Obtain the completed inventory internal controls questionnaire from the plant controller.
• Interview employees associated with the receiving process to gain an understanding of it.
• Perform an initial flow charting of the process as described by personnel involved and interviewed.
• Prepare a time estimate and communicate expectations to all team members.