Sample inventory count
In one sentenceCounting a limited number of selected items and comparing them with the book balance, to judge the accuracy of all inventory records without counting everything.
Simply put
You pick a sample of items, count them and compare with the system. If differences are few, it is a sign the records are reliable; if there are many, a full count is better.
Auditors and management use it for a quick check, and it does not replace dealing with every difference found.
Worked example
A store's finance manager counted 50 items selected from 1,000 items and found differences in two items. Management set an acceptable limit of 2% for differences.
Items counted50 items
Items with a differenceTwo items
Share of items with differences2 ÷ 50 = 4%
The rate is above the acceptable 2% limitA full count is advisable
Don't confuse it with
Audit samplingAudit sampling is broader and covers all balances and transactions, while a sample count is for inventory.