1.1This practice addresses inventory verification which includes either physically or electronically confirming the existence, location, and quantity of assets.
1.2Inventory verification is a key element in the asset management process.
1.3The appropriate level to track assets is best expressed in Practices E2499 and E2608. Different types of assets may be managed or tracked at different levels of control, as noted in Practice E2608. The location specificity required for an inventory verification should match the location specificity required by the entity’s asset management procedures or other controlling command media.
1.4Inventory verification requires proper planning and execution. Depending on the type and scope, the inventory verification can involve significant dedication of resources. Entities should ensure that the value earned from an inventory verification is equal to or greater than the costs of the dedication of resources.