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Appendix

Appendix: Glossary of Terms

1. Audit​

Term and Description​

  • Inventory Audit
    A systematic examination of a company's inventory records and physical stock to ensure accuracy and compliance.

  • Stock Item
    A product or material listed in the inventory for auditing and management.

  • Audit Plan
    A structured schedule or set of tasks outlining the scope, objectives, and timeline for conducting an inventory audit.

  • Auditor
    A person responsible for verifying inventory accuracy by inspecting and reconciling stock records.

  • Cross Auditor
    A secondary auditor tasked with independently reviewing and validating the work of the primary auditor for accuracy.

  • Audit Owner
    The individual accountable for overseeing the entire audit process, assigning tasks, and ensuring completion.

  • Physical Stock Count
    The manual counting of inventory items to verify records against the actual stock.

  • Reconciliation
    Matching physical stock counts with inventory records to identify discrepancies.

  • Variance
    The difference between recorded stock levels and physically counted stock.

  • Perpetual Inventory System
    An inventory method where stock levels are updated in real-time as transactions occur.

  • Cycle Counting
    A continuous process of auditing subsets of inventory, rather than a full inventory at once.

  • Stock Keeping Unit (SKU)
    A unique code assigned to inventory items for identification and tracking purposes.

  • Barcode Scanning
    The process of using a scanner to read barcode labels for quick identification of stock items.

  • Discrepancy Report
    A document outlining differences or inconsistencies found between inventory records and physical counts.

2. Barcode Format Recommendations​

  • Code 128
    High density and ideal for inventory applications. Supports alphanumeric characters.

  • QR Codes
    Suitable for including additional data such as location or batch details.

  • EAN-13
    A standard barcode format for retail items with numeric data.