Internal controls for inventory refer to proactive measures taken by an organization in order to effectively monitor, secure and manage their inventory assets. Companies employ internal controls such as data entry audits, access to specific areas of the warehouse, and automated tracking systems to ensure the accuracy and security of their inventory. By implementing these controls, companies can reduce their risk of loss due to theft, damage or errors while optimizing their inventory management process. With the right internal controls in place, organizations can be confident that their inventory is safe and sound—allowing them to focus on providing customers with quality products and services.