Field notes
Inventory Counts That Satisfy Both Warehouse and Auditor
Physical inventory observation is one of the few audit procedures that lives on the warehouse floor. Floor supervisors want throughput; auditors want count sheets that match what sits on the rack. Both can succeed if the day is staged.
Freeze receiving and shipping for the count window, or isolate zones so movement does not contaminate counted areas. Pre-number count sheets, assign two-person teams, and keep a control log of sheets issued and returned. Tag slow-moving or damaged stock before the count so write-down discussions happen with evidence, not memory.
Auditors will test-count samples and trace to sheets and perpetual records. Discrepancies should be investigated the same day while bins are still accessible. A recount policy for material variances saves weekend callbacks.
If your warehouse spans multiple buildings, tell the engagement team early. Dual teams or staggered start times keep production calendars intact without compromising coverage. Share floor maps and SKU concentration heat maps so sample selection is efficient.
After the count, reconcile quickly to the perpetual system and document adjustments. The audit file needs the bridge, not only the final number on the balance sheet.