Red Seal Parts Technician Practice Exam

What constitutes a complete inventory audit?

1. A thorough review and count of all parts in stock against recorded inventory data

2. A one-time count of the most valuable items in the inventory

3. A digital analysis of sales data trends

4. A comparison between estimated and actual product sales

The correct answer is: A thorough review and count of all parts in stock against recorded inventory data

A complete inventory audit involves a thorough review and count of all parts in stock against the recorded inventory data. This process ensures that the physical inventory matches what is documented in the inventory management system or records. It helps identify discrepancies, whether they are due to miscounts, theft, loss, or other reasons, allowing for accurate financial reporting and inventory management. This comprehensive approach is essential for maintaining effective inventory control and supporting decision-making processes within a business. In contrast, counting only the most valuable items or conducting a digital analysis of sales trends does not provide a holistic view of the entire inventory. Similarly, comparing estimated and actual product sales focuses more on sales performance rather than physically validating stock levels. Thus, while those other methods may serve specific purposes, they do not fulfill the requirements of a complete inventory audit.