Auditing perpetual inventory system

Periodic physical counts are still necessary with a perpetual system but are conducted less often and at lower cost and scale

Perpetual inventory systems may be preferable to older periodic inventory systems because they allow for immediate tracking of sales and inventory levels for individual items, which helps to prevent stockouts

Perpetual inventory systems track the sale of products in real time through the use of point-of-sale systems

The perpetual inventory method does not attempt to maintain counts of physical products

Perpetual inventory systems are in contrast to periodic inventory systems, in which periodic counts of products are utilized in record keeping