Inventory Management Audit Form

INVENTORY MANAGEMENT AUDIT FORM

Client Name:

Client Address:

Service Provider Name:

Service Provider Address:

RECITALS

WHEREAS, the Client operates inventory storage and distribution facilities and requires an independent audit of inventory records, controls and physical stock; and

WHEREAS, the Service Provider represents that it has the personnel, methodology and expertise to perform an inventory management audit and provide findings and recommended corrective actions; and

WHEREAS, the parties desire to set forth the scope, timing, compensation and confidentiality terms governing the provision of audit services as set forth in this Agreement;

Effective Date:

SCOPE OF WORK

AUDIT CHECKLIST

Use the checklist below to confirm which procedures were performed during the audit.

Physical inventory count completed

Cycle counts performed and documented

Reconciliation of system records to physical counts

Bin/location verification and labeling review

Obsolescence and slow-moving stock assessment

Inventory security and access control assessment

AUDIT DETAILS — ITEMIZED SAMPLE

Provide sample items inspected. Attach additional schedules as needed.

OBSERVATIONS AND FINDINGS

PAYMENT TERMS

Audit Fee Amount:

Late Payment Fee:

All invoices are due as specified in the payment schedule. Unpaid amounts shall accrue interest at the late payment rate specified above and Client shall be responsible for reasonable collection costs and attorneys' fees incurred by the Service Provider to collect overdue amounts.

TERM AND TERMINATION

Term Commencement:

Term Expiration:

Either party may terminate this Agreement for convenience by delivering written notice to the other party no fewer than days prior to termination. Termination for cause may be immediate where a material breach is not cured within 30 days after written notice.

CONFIDENTIALITY

Definition: "Confidential Information" means non-public business and operational information disclosed by one party to the other, whether in writing, orally, electronically or by inspection, including inventory records, valuation methodologies, system credentials, and internal control documentation.

Obligations: The receiving party shall (a) maintain Confidential Information in strict confidence, (b) use such information solely to perform the services under this Agreement, and (c) restrict disclosure to employees and contractors with a need to know, provided such persons are bound by confidentiality obligations at least as protective as those herein. The receiving party shall implement and maintain reasonable administrative, technical and physical safeguards to protect Confidential Information.

Exclusions: Confidential Information does not include information that is publicly available through no fault of the receiving party, already known to the receiving party prior to disclosure, independently developed, or rightfully received from a third party not subject to confidentiality obligations.

Return/Destruction: Upon expiration or termination, the receiving party shall, at the disclosing party's option, return or certify destruction of Confidential Information within days.

GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to conflict of law principles. The parties submit to the exclusive jurisdiction of the state and federal courts located in that State for disputes arising under this Agreement.

ENTIRE AGREEMENT

This Agreement, including any attachments and schedules, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, proposals and communications, whether written or oral. Any amendment to this Agreement must be in writing and signed by authorized representatives of both parties.

AUDITOR CERTIFICATION

The undersigned auditor certifies that the procedures documented in the Scope of Work were performed with professional care, that findings are accurate to the auditor's knowledge, and that recommendations are objectively based on observed conditions and supporting documentation.

Auditor certifies the report

Auditor Name:

Auditor Title/License:

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