Controls Over Inventory Count:

While stock taking you should apply following controls over inventory

1. Movements of inventory should be stopped during inventory counts.

2. Inventory counting sheets should be pre-printed with a description or item code of the goods, but the quantities per the records should not be pre-recorded.

3. Count-teams should be independent of warehouse department and should be sufficiently experienced and permanent employees of company.

4. Count-teams should consist of two members. One should count items, other should record item description and quantity.

5. Clear instructions should be given to all teams as to which area of warehouse is to be counted by which team to avoid omission or duplication of counting of items.

6. Count-sheets are signed by each staff member to determine accountability.

7. Inventory should be marked/tagged to indicate that it has been counted.

8. All inventory sheets should be prenumbered.

9. Damaged inventory should be separately identified.