Inventory audit procedures are the steps taken by a company to collect data and assess the accuracy of its inventory records. This process is designed to ensure that the correct amount of items are available for sale and to identify any discrepancies between physical inventory and recorded inventory numbers. It also serves to provide an accurate valuation of the company’s inventory for financial reporting purposes. Through proper audit procedures, companies can ensure fidelity in their financial statements and remain in compliance with applicable accounting standards. By conducting regular audits of inventory levels, companies can be confident that they are not overstocked or understocked and that they have the right items on hand.