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Key Responsibilities and Required Skills for Inventory Auditor

💰 $40,000 - $75,000

OperationsSupply ChainAuditingInventory ManagementFinance

🎯 Role Definition

An Inventory Auditor is responsible for ensuring the integrity, accuracy, and compliance of inventory records through systematic physical counts, cycle counts, reconciliations, variance analysis, and process improvement. This role partners closely with warehouse operations, procurement, finance, and loss prevention to reduce shrinkage, validate inventory valuation, and support audit and regulatory requirements. The ideal candidate combines strong analytical ability with hands-on experience in ERP systems, barcoding/RFID technology, and inventory control procedures.

Key SEO terms: Inventory Auditor, inventory audit, cycle count, physical inventory, inventory reconciliation, ERP inventory, shrinkage control, warehouse audit, inventory accuracy, SOX inventory control.

📈 Career Progression

Typical Career Path

Entry Point From:

  • Inventory Clerk / Stock Clerk
  • Warehouse Associate or Stockroom Supervisor
  • Junior Auditor or Accounting Assistant

Advancement To:

  • Senior Inventory Auditor / Inventory Control Supervisor
  • Inventory Manager / Stock Control Manager
  • Internal Audit Specialist (Inventory) or Loss Prevention Manager
  • Supply Chain Analyst / Operations Manager

Lateral Moves:

  • Quality Assurance Analyst (operations-focused)
  • Procurement Analyst
  • Finance / Accounts Payable Analyst (inventory accounting)

Core Responsibilities

Primary Functions

  • Conduct scheduled and unscheduled physical inventory counts and cycle counts across multiple locations, warehouses, and sales floors to validate on-hand quantities and to ensure inventory records in ERP systems (e.g., SAP, Oracle, NetSuite) reflect true stock levels.
  • Plan and execute inventory audit programs, including frequency planning, sampling methodology, auditor assignment, and post-count reconciliation to achieve and maintain target inventory accuracy metrics.
  • Investigate and document inventory variances and discrepancies by tracing transaction histories, reviewing receiving and shipping logs, examining bin locations, and interviewing operations personnel to determine root cause.
  • Perform end-to-end inventory reconciliations between physical counts, warehouse management systems (WMS), ERP records, and financial ledgers; prepare detailed reconciliation reports for finance and operations stakeholders.
  • Own cycle count programs, including scheduling, KPI tracking, exception reporting, and continuous optimization to reduce shrinkage and improve perpetual inventory accuracy.
  • Identify recurring loss, damage, or misplacement patterns and develop corrective action plans with warehouse supervisors, procurement, and loss prevention teams to mitigate inventory risk.
  • Execute audit testing for inventory valuation and costing methods (FIFO, LIFO, weighted average), assessing impact on cost of goods sold and financial statements, and collaborate with accounting to ensure GAAP-compliant adjustments.
  • Maintain and validate inventory control documentation—standard operating procedures (SOPs), count sheets, variance logs, and audit trail evidence—to support internal and external audits, including SOX and regulatory compliance reviews.
  • Utilize handheld scanners, RFID readers, barcode systems, and mobile devices to capture count data accurately; troubleshoot technology issues and liaise with IT/Systems teams for system improvements.
  • Run and interpret inventory and transaction reports (cycle count results, inventory turnover, days of inventory on hand) from ERP and WMS to monitor trends and provide actionable insights to leadership.
  • Provide on-the-floor supervision during full physical inventories, coordinating staging, line flows, lot/serial verification, and reconciliation teams to ensure efficient and accurate stocktake operations.
  • Validate and reconcile returned goods, damaged inventory, and scrap items; coordinate with returns processing, quality control, and accounting to ensure appropriate disposition and valuation adjustments.
  • Prepare and present concise audit findings, variance analyses, and remediation plans to operations managers, financial controllers, and executive stakeholders, including recommendations and timelines for corrective actions.
  • Support month-end and year-end inventory close activities by coordinating counts, providing audit evidence, and assisting accounting with journal entries related to inventory adjustments.
  • Review purchase orders, receiving documents, and shipping manifests to confirm proper receipt and issuance and to detect timing or clerical errors that cause inventory discrepancies.
  • Conduct random spot checks and targeted audits focused on high-value, high-turn, or high-risk SKUs to ensure compliance with security, storage, and handling policies.
  • Implement and monitor inventory control KPIs (accuracy, shrinkage rate, cycle count completion, inventory turnover) and lead continuous improvement initiatives to drive measurable performance gains.
  • Train and mentor warehouse and store personnel on correct counting procedures, label placement, bin management, cycle count protocols, and best practices to improve overall inventory accuracy.
  • Coordinate with supply chain planning and procurement to identify and resolve issues related to overstocks, stockouts, obsolete inventory, and product lifecycle transitions.
  • Maintain strict confidentiality and integrity when handling sensitive inventory valuation information and investigation results; escalate unresolved discrepancies according to escalation matrix.
  • Support internal and external audit requests by compiling documentation, providing walkthroughs, and addressing auditor queries to demonstrate inventory control effectiveness and compliance.

Secondary Functions

  • Assist in the development, documentation, and roll-out of new inventory processes, policies, and training materials to standardize counting and reconciliation practices across multiple sites.
  • Support ad-hoc investigations into suspected theft, fraud, or major loss events and coordinate evidence collection with loss prevention and legal teams as required.
  • Collaborate with IT and systems analysts to test, validate, and improve ERP/WMS integrations, barcode label formats, and handheld scanning workflows.
  • Participate in cross-functional process improvement projects (Lean, Six Sigma, Kaizen) aimed at reducing handling errors, improving picking accuracy, and streamlining count operations.
  • Provide ad-hoc analytical support and build inventory dashboards, pivot tables, and visualizations in Excel or BI tools to help teams monitor performance and make data-driven decisions.
  • Assist procurement and merchandising teams with SKU rationalization efforts by providing historical accuracy and variance data to inform decisions about discontinuation or consolidation.
  • Help coordinate logistics for large-scale inventories, including temporary staffing, equipment needs, and staging of high-volume zones to minimize business disruption.
  • Perform periodic reviews of cycle count plans and adjust sampling methodologies based on SKU risk, movement velocity, and historical variance patterns.

Required Skills & Competencies

Hard Skills (Technical)

  • Inventory auditing and stocktaking methodology (cycle counting, full physical inventory, sampling techniques).
  • Proficient in ERP/WMS systems (SAP MM/WM, Oracle Inventory, NetSuite, Manhattan, JDA) for transaction tracing and reconciliation.
  • Strong Excel skills: VLOOKUP/XLOOKUP, pivot tables, advanced formulas, data cleaning, and conditional formatting for variance analysis.
  • Experience with handheld barcode scanners, RFID systems, and mobile inventory capture devices; understanding of barcode symbologies and labeling best practices.
  • Inventory valuation and accounting knowledge: FIFO, LIFO, weighted average, and GAAP inventory adjustments.
  • Reconciliation techniques for matching physical counts to system quantities, financial ledgers, and receiving/shipping documentation.
  • Familiarity with loss prevention, shrinkage analysis, root cause investigation, and corrective action planning.
  • Experience preparing audit evidence and working with internal/external auditors; knowledge of SOX inventory control requirements is a plus.
  • Basic SQL or data query skills for extracting inventory and transaction data from databases (helpful but not always required).
  • Ability to generate and interpret inventory KPIs and operational metrics (inventory accuracy, shrink rate, days of inventory, turnover).
  • Experience handling serialized/lotted inventory and performing traceability and verification for recalls or warranty claims.
  • Proficient in inventory reporting and BI tools (Power BI, Tableau, or equivalent) for dashboards and stakeholder reporting.

Soft Skills

  • Exceptional attention to detail and strong investigative mindset to uncover and document root causes of discrepancies.
  • Clear and concise written and verbal communication skills for presenting findings and interacting with cross-functional teams.
  • Analytical thinking with the ability to synthesize large data sets into actionable recommendations.
  • Strong organizational and time-management skills; able to prioritize competing audits and close periods under deadline pressure.
  • Integrity, discretion, and professional judgment when handling sensitive financial and operational information.
  • Collaboration and influence skills to work effectively with warehouse teams, finance, procurement, and IT.
  • Problem-solving orientation and continuous-improvement mindset focused on measurable results.
  • Adaptability and resilience in fast-paced distribution, retail, or manufacturing environments.
  • Training and coaching capability to upskill operations staff on inventory best practices.
  • Customer-service orientation when interacting with internal stakeholders and external auditors.

Education & Experience

Educational Background

Minimum Education:

  • High school diploma or equivalent; relevant certifications in inventory or auditing preferred.

Preferred Education:

  • Bachelor’s degree in Accounting, Finance, Supply Chain Management, Logistics, Business Administration, or a related field.

Relevant Fields of Study:

  • Accounting or Finance
  • Supply Chain Management / Logistics
  • Business Administration
  • Operations Management
  • Industrial Engineering

Experience Requirements

Typical Experience Range:

  • 2–5 years of hands-on experience in inventory control, warehouse operations, or inventory auditing; retail, manufacturing, or distribution center experience strongly preferred.

Preferred:

  • 3+ years of inventory audit experience, demonstrated success running cycle count programs, ERP reconciliation expertise (SAP/Oracle/NetSuite), and a track record of reducing shrinkage/increasing inventory accuracy. Prior exposure to SOX controls, loss prevention investigations, or serialized inventory environments is highly desirable.
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