What is the primary objective of regular inventory audits?

The primary objective of regular inventory audits is to verify inventory records and assess physical stock for discrepancies. Conducting these audits allows organizations to identify any differences between the actual physical inventory and what is reflected in the inventory management system. This process ensures accuracy in inventory records, helps in spotting potential issues such as theft, loss, or mismanagement, and contributes to better decision-making regarding inventory levels and reordering processes.

By accurately reflecting inventory levels, audits play a crucial role in financial reporting, operational efficiency, and supply chain management. This verification helps maintain the integrity of the inventory management system, ultimately leading to improved customer satisfaction due to the availability of products and services as expected. Other options, while they may be related to inventory management practices, do not capture the fundamental purpose of conducting regular inventory audits.