Which statement about cycle counts is correct?

• A. Cycle count regularly verifies inventory data accuracy by counting a subset and reconciling discrepancies.
• B. Cycle count replaces annual physical counts entirely.
• C. Cycle count is unrelated to data integrity.
• D. Cycle count eliminates the need for audits.

Answer: (A)

Cycle counting is about keeping inventory data trustworthy by regularly counting a small, representative subset of items and reconciling what you find with the records. When variances show up, you investigate and adjust the system to improve accuracy over time, all without shutting down for a full physical count. This approach directly supports data integrity in day-to-day operations and is used alongside, not as a replacement for, the annual physical count. It also doesn’t eliminate the need for audits or imply that audits aren’t important for broader controls.