Inventory Observation Support

Who this engagement serves

Manufacturers and distributors whose year-end inventory is material to the financial statements, or whose banks require third-party observation of the count.

What you receive

Observation notes, test counts, cut-off checks on receiving and shipping, and a short memo for the audit file and your finance lead.

Why observation matters

When inventory sits heavy on the balance sheet, an independent observer protects both management and the auditor’s opinion. We arrive before the count starts, watch how tags are issued and collected, and select SKUs for test counts without disrupting night-shift crews more than necessary.

Suitability

This engagement can stand alone when a lender asks for observation, or it can fold into the statutory financial statement audit. Tell us the number of sites, whether cold storage or bonded warehouses are involved, and whether goods in transit require separate cut-off procedures.