Question

What is the purpose of an inventory audit?

• A. To count and verify inventory quantities
• B. To determine the value of inventory
• C. To identify slow-moving items
• D. To optimize inventory levels

Hint:

Inventory audits help detect discrepancies between actual and recorded stock.

Answer 1

The Correct Option is A

Step 1: Understanding inventory audit.
An inventory audit involves physically checking stock and matching it with recorded data.

Step 2: Evaluating options.

• (A): Correct. Audit ensures quantity accuracy.
• (B): Valuation is secondary.
• (C): Analysis task, not audit purpose.
• (D): Inventory optimization is a management function.

Step 3: Conclusion.
Thus, the main purpose is to verify inventory quantities.
Final Answer:} To count and verify inventory quantities.