Control Intelligence

AI Analysis Results

Cycle Counts & Physical Inventory — Inventory & Cost of Goods

Back to Sub-Process
67
/ 100
Adequate
Overall Sub-Process Rating
Adequate — Control exists and operates; minor enhancements possible.
1 control evaluated4 strengths identified2 gaps identified
Executive Summary

The Cycle Counts & Physical Inventory process demonstrates adequate controls overall, with most key controls designed and operating as intended. Certain areas require enhanced documentation or monitoring to close identified gaps, but no material weaknesses were noted during the assessment period.

Strengths
  • A cycle count program covers all SKU categories... is consistently executed
  • Key controls are documented in a centralized repository
  • Segregation of duties is enforced across critical functions
  • Management review is performed on a regular cadence
Gaps
  • No automated alerting for control threshold breaches
  • Exception handling procedures are informal and inconsistently applied
Recommendations
  1. 1Implement a workflow tool that captures reviewer identity and timestamp for all approvals
  2. 2Automate exception detection and route alerts to control owners within 24 hours
  3. 3Establish a quarterly monitoring schedule with documented results and sign-off
Framework Mapping
COSO 2013
Principle P10Principle P16
SOX 404
ICFR.INV.CC.01
IIA Standards 2024
IV.9.2IV.9.3

Control-Level Breakdown (1)

INV-CC-01AdequateScore: 69/100
A cycle count program covers all SKU categories at least annually.
Key Finding

The control is in place and generally operating as intended. A cycle count program covers all SKU categories at least annually. Minor documentation or timeliness gaps were noted but do not represent material risk.

Recommendation

Enhance documentation and monitoring for: a cycle count program covers all sku categories at least annually. Ensure review evidence includes timestamps and reviewer identity.

Framework Tags
COSO P10COSO P16ICFR.INV.CC.01IIA IV.9.2IIA IV.9.3