Contributed 3/10/99 by Candace Brister <candacekb@hotmail.com>

Company Name
INTERNAL  AUDIT  PROGRAM
CYCLE  COUNTS 

#____________Location____________________________________________Division_______________________________

1.	Did we obtain the plant's guidelines for cycle count procedures, if they exist?  If they do not, did we document the procedure for cycle counting?  (At a minimum determine who performs the cycle counting and how often the counts are taken)


2.	Did we request to go with the cycle counter to count the inventory items required to be counted?  Did the counter appear familiar with the items being counted, and did there appear to be an effort made to get an accurate first count?


3.	Did we ensure that the counter is properly preparing the cycle count worksheet by completing the quantity, date, and initialing each count?


4.	Did we observe the keying process into BPCS to determine what the initial error rate was?  (i.e. if they have to investigate 3 of the 4 items counted the error rate is 75%)


5.	Did we determine that an investigation was made to resolve the discrepancies, and if reconciling items were noted, that the nature of the reconciling items are also noted?


6.	Did we ensure in the final keying that the count recorded into BPCS is the reconciled count amount?  This can be done by either observing the actual data entry or reviewing the output report.  (you may have to request that this be sent to you if the corrections are not entered before leaving the field.