Inventory auditing is the process of assessing and verifying the accuracy of inventory records. It involves evaluating the quantity and condition of items in stock and ensuring that they match what’s listed on an organization’s books. Auditors take a systematic approach to inventory assessment, beginning with a physical count before comparing the results against recorded data. By regularly conducting inventory audits, businesses can ensure accurate record keeping, efficient administration, and robust security practices. This helps to reduce losses due to stock shrinkage or theft – helping to maximize profits and keep track of inventory levels.