Field Notes · 2026-05-12
How we sample inventory without slowing your count day
Practical steps for coordinating auditor attendance when your warehouse runs a full physical count in a single morning.
Physical inventory is often the most visible part of a financial audit. For manufacturers and distributors in regional Japan, the count may happen once a year on a Saturday morning with temporary staff. Auditors who arrive without a sampling plan waste everyone’s time.
We begin by reviewing the perpetual inventory system and last year’s count variances. High-value SKUs, slow movers, and locations with prior shortages get heavier sample weights. Bulk commodities may be tested by weight tickets rather than piece counts.
On the floor, our team observes client counters rather than directing them. We re-count selected bins after the client team finishes, then compare results to the count sheets before tags are closed. Discrepancies are investigated the same day while the warehouse still has people available.
Clients who share a floor plan and a list of sealed areas the week before rarely see the count extend past lunch. That preparation also shortens the later valuation testing, because cut-off evidence is already documented.