A stock audit is a systematic examination of a company's inventory to ensure that the physical stock matches the recorded amounts in the accounting system. This process helps identify discrepancies, such as missing items or overstock, and ensures accurate financial reporting. Regular stock audits can also help improve inventory management and reduce losses. During a stock audit, auditors may use various methods, including physical counts and inventory management software, to assess the stock levels. Companies often conduct these audits annually or quarterly, depending on their size and industry. Effective stock audits contribute to better decision-making and operational efficiency.