What does the physical inventory process involve?

The physical inventory process involves a thorough and systematic verification that compares the records of property with the actual physical property itself. This process is crucial to ensure accuracy in property accountability, as it helps identify discrepancies between the records on file and what is physically present. It also allows organizations to track losses, ensure compliance with regulations, and maintain proper stewardship of assets.

This rigorous method aids in confirming the integrity of the property management system, assuring that each item is documented, accounted for, and in working condition. The focus on a systematic approach emphasizes the importance of precision and thoroughness, which are key components in maintaining an effective property accountability program.