During a stock take, what is the correct action if counts do not match the system?

• A. Ignore the discrepancy and proceed
• B. Randomly adjust the system to match counts without investigation
• C. Reconcile counts with the system, investigate discrepancies, and adjust records with proper approvals
• D. Remove items from inventory without updating records

Answer: (C)

When counts don’t match the system, you’re confirming that inventory data needs correction and investigation. The right approach is to reconcile the physical counts with what the system shows, investigate why the discrepancy occurred—rechecking items, verifying locations, reviewing entry errors, receipts, or losses—and then adjust the records in the system, but only after confirming the actual quantity and getting the proper approvals. This keeps inventory data accurate, supports correct financial reporting, and leaves an auditable trail. Skipping the check, making ad-hoc adjustments, or removing items without updating records undermines control and can hide losses or errors.