An inventory audit is a periodic and systematic review of a company’s physical inventory, with the purpose of validating the quantity, location and condition of its stock. It is an important part of any organization’s overall internal control process, as it ensures accuracy and accountability within the supply chain. Inventory audits also help a business identify and anticipate issues with overstock, understock, damaged or obsolete items, or lost/stolen products. In short, an inventory audit is like a financial health check for your business—a proactive way to stay on top of all your assets and avoid costly errors in the long run.