Control Intelligence

Cycle Counts & Physical Inventory

Cycle count program, annual physical inventory, and adjustment authorization.

Sub-Process Score
67/ 100
Adequate
7/10 responses received
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Control Objectives (1)

INV-CC-01
COSO P10COSO P16ICFR.INV.CC.01IIA IV.9.2IIA IV.9.3
A cycle count program covers all SKU categories at least annually.
Risk: Inventory records diverge from physical quantities.
Assessment Questions (3)
  • 01Cycle count schedule covers A/B/C classified items appropriately.
  • 02Count adjustments above a threshold require management approval.
  • 03Root cause analysis is performed for variances exceeding tolerance.