How would you conduct a quarterly stock audit and what indicators would you track?

• A. All of the above
• B. Physical count
• C. Monitor expiry exposure, value variance, and write-offs
• D. Compare with records

Answer: (A)

A quarterly stock audit works best when you verify both what’s physically on hand and what your records say, while also watching key indicators that flag financial and stock risks. Begin with a physical count to determine the actual quantities, inspecting items, batches, and expiry dates if relevant, and note any discrepancies. Then compare what you counted with the records in your inventory system to catch data-entry errors, misplaced stock, or unrecorded transactions. Track indicators such as expiry exposure to assess how much stock is nearing its end of life, value variance to detect differences between recorded value and actual value from price changes or damage, and write-offs to capture stock that must be removed from the books. Combining these elements gives a complete view: you confirm existence, ensure accuracy, and monitor financial and waste-related risks. Relying on only one part could miss discrepancies or looming losses, but integrating all of these steps provides a thorough, actionable audit.