Which statement describes stock discrepancy checks?

• A. They are optional for audited stores
• B. They are performed only during annual audits
• C. They involve comparing physical stock with records to identify variances
• D. They replace the need for cycle counts

Answer: (C)

Stock discrepancy checks focus on reconciling what is physically on hand with what the records say should be on hand. They involve counting the actual stock and comparing it to the inventory records to spot any variances. When differences appear, they’re investigated and corrected, helping to detect errors, miscounts, data entry mistakes, or loss and theft, and ensuring the stock records reflect the true quantity and value.

This is the best description because it explicitly states the core action (comparing physical stock with records) and the outcome (identifying variances), which is exactly what discrepancy checks are for. They’re a routine control used to maintain accuracy, not optional, not limited to yearly audits, and they don’t replace cycle counts, which are ongoing physical verifications.