Which action is not typically part of a monthly stock reconciliation process?

• A. Conduct annual supplier audit
• B. Investigate differences
• C. Adjust records with proper approvals
• D. Document root cause

Answer: (A)

Monthly stock reconciliation centers on ensuring the inventory records match the actual stock on hand. The typical workflow involves comparing the physical count with system records, investigating any differences to determine their causes, adjusting the records with the proper approvals, and documenting the root cause of discrepancies to prevent recurrence. Conducting an annual supplier audit, while important for evaluating supplier performance and quality, is not part of this month-to-month process. It’s a broader, periodic activity focused on suppliers rather than on day-to-day stock variances, so it doesn’t belong to the monthly reconciliation steps.