Inventory Audit

To ensure that physical cannabis inventory matches digital records in the POS and state traceability system. Regular audits help detect discrepancies, prevent diversion, support compliance, and maintain accurate reporting. CloudBox's automated inventory smart containers are used to eliminate manual inventory counting and to streamline audit accuracy.

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• Inventory Manager
• General Manager
• Auditor

Weekly, biweekly, or monthly depending on store volume, internal policy, and state compliance requirements.

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1. Determine the Audit Scope and Schedule
   • Identify whether the audit will cover the full inventory, specific product categories, or specific storage rooms.
2. Pull Digital Inventory Reports
   • Generate inventory reports from the POS, METRC/BioTrack, or other compliance systems.
   • Reports should include product type, SKU, package ID, quantity on hand, and recorded storage location.
3. Prepare Audit Materials
   
   • Gather audit sheets, barcode scanners, clipboards, or mobile audit devices.
4. Conduct Physical Inventory Count
   
   • Manually count every item in the designated audit area (if you're not using CloudBox automated smart containers)
   • Verify package IDs, product names, and quantities.
   • For CloudBox users, simply place the container on the CloudBox provided scale and the inventory will be automatically counted and update CloudBox's system.
5. Document Audit Results
   
   • Record all counts on audit sheets or in the digital audit tool.
   • Note partially used packages, open units, or any product requiring further review.
6. Compare Physical Counts to System Data
   • Manually compare physical counts with POS and traceability system records (if CloudBox isn't being used)
   • For CloudBox users, CloudBox will automatically detect discrepencies and alert you so you can reconcile them in the point of sale and state tracability system.
   • Mark all shortages, overages, or mismatches.
7. Investigate Discrepancies
   • Review transaction logs, manifests, transfers, and recent waste or destruction records.
   • Determine root cause and document findings.
8. Escalate and Document Unresolved Issues
   
   • If discrepancies cannot be resolved during the audit, escalate to the Inventory Manager or General Manager.
   • Follow internal procedures for discrepancy documentation and correction.
9. Update Compliance Systems or POS as Needed
   • Adjust METRC/BioTrack and POS records if approved and required by regulation.
10. Store Completed Audit Reports
    • Save all audit documentation for regulatory review according to state record retention rules.

• Printed inventory reports
• Audit sheets or digital audit software
• Barcode scanner or audit mobile device
• CloudBox system (ifapplicable)
• Access to POS and traceability systems
• Clipboard and writing tools

Rotate which team members conduct audits and vary the days they happen. Randomization makes it harder for internal theft to go unnoticed and improves overall accuracy of inventory.

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