What action should be taken when inventory discrepancies are detected?

What action should be taken when inventory discrepancies are detected?

• A. Ignore the discrepancy.
• B. Report to HR.
• C. Adjust the records to reflect the physical stock.
• D. Cease operations.

Answer: (C)

When inventory counts don’t line up with the records, you should verify the physical count and then adjust the records to reflect the actual stock. This keeps asset records accurate for planning, ordering, reporting, and accountability, and helps pinpoint and address any losses or shrinkage. Ignoring a discrepancy allows shortages to accumulate and damages the integrity of the inventory system. Reporting to HR isn’t the proper channel for inventory control, and stopping operations is unnecessary and disruptive. Adjusting without verification could mask the real cause, so after updating the records you should investigate what caused the difference and implement corrective actions to prevent it from happening again.

When inventory counts don’t line up with the records, you should verify the physical count and then adjust the records to reflect the actual stock. This keeps asset records accurate for planning, ordering, reporting, and accountability, and helps pinpoint and address any losses or shrinkage. Ignoring a discrepancy allows shortages to accumulate and damages the integrity of the inventory system. Reporting to HR isn’t the proper channel for inventory control, and stopping operations is unnecessary and disruptive. Adjusting without verification could mask the real cause, so after updating the records you should investigate what caused the difference and implement corrective actions to prevent it from happening again.