The Inventory Management Questionnaire allows auditors to gain valuable insights into the organization's inventory management processes. The attached sample questionnaire is structured around key areas such as forecasting, inventory accuracy, supplier base optimization and tactical management. By utilizing this tool, auditors can better understand how the organization strategizes its inventory management to meet market demands while maintaining high customer satisfaction.

In addition to providing an overview of the company's current practices, the questionnaire probes potential weaknesses and areas for improvement in its systems. Questions concerning electronic and automated inventory management tools, frequency of physical counting, and performance measure computation offer auditors a clear picture of where the company stands. This will aid in identifying gaps and recommending improvements in the system.

Furthermore, through this questionnaire, auditors can assess the level of integration between various internal departments, such as warehousing, distribution and purchasing. It also offers insights into how well an organization uses technology to organize and automate its inventory processes. With this information at hand, auditors can evaluate whether the existing strategies align with best practices and suggest ways to enhance operational efficiency.

Sample questions include:

• Are inventory management systems within the company linked to each other so there is a timely and accurate information flow between departments?
• What do you feel are the top three strengths of the company’s forecasting process?
• Has a regular schedule been established for monitoring forecast accuracy?