What is the first step in conducting an inventory audit?

The first step in conducting an inventory audit is planning the audit. This involves defining the scope and objectives of the audit, determining the timeframe, and preparing the necessary tools and resources. A well-planned audit helps ensure that the process is efficient and thorough, allowing the auditors to identify what items need to be counted, the location of those items, and the personnel involved in the process. Planning also includes establishing methodologies for counting and reconciling any expected discrepancies, as well as communicating the process to the relevant teams. This foundational step is crucial for a successful audit, as it sets the stage for all subsequent actions to follow.