Procedures for a Physical Inventory Count
Every students to indicate, by a show of hands, whether students have participated in
taking a physical inventory count. Next, ask who has participated in an inventory
count recently. Call on one or two students to describe the procedures that were used
during the inventory count. This will supplement the procedures described in the text
with additional, real-world examples. If you have participated in a physical inventory
count, you may also want to describe the procedures used.
The following question can be used to stimulate further class discussion: Should
warehouse employees be members of the inventory count team? Point out that a
warehouse employee could steal inventory and cover up the theft by inflating the
physical inventory count if he/she were on the count team.