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If you are running a successful and comprehensive cycle counting program, there is little benefit to performing an annual physical inventory. Unfortunately, many in the financial establishment still live in the Dark Ages when it comes to inventory counting and will try to tell you that "you must perform an annual physical". However, if your inventory is too extensive or if you are in a 24/7 operation, do not want to shut down operations, and feel confident in the accuracy of your cycle count program, you can pressure them into accepting some type of on-site audit instead. They generally don't like it but they will do it.
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