> ## Documentation Index
> Fetch the complete documentation index at: https://docs.inventory-hq.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Run Physical Audits and Cycle Counts in Inventory HQ

> Learn how to reconcile recorded stock with physical counts using job audits and inventory cycle counts in Inventory HQ. Includes auditor assignment and negative stock handling.

An audit reconciles recorded stock against a physical count. Audits are how negative balances and miscounts get corrected, so they are the backstop for all material movements in Inventory HQ.

## Job audits

Job audits verify that the materials pulled for a job match what was actually used. This is the final step before a job is closed and its costs are locked.

<Steps>
  <Step title="Mark the job ready for audit">
    When a job's material movements are complete, click **Ready to Audit** on the job.
  </Step>

  <Step title="Route to the assigned auditor">
    The job is routed to the auditor assigned to that location. Assignment is location-based, so the person responsible for that warehouse or truck receives it.
  </Step>

  <Step title="Auditor receives notification">
    That auditor receives a Ready for Audit notification, including on the mobile app.
  </Step>

  <Step title="Auditor reviews and decides">
    The auditor reviews the recorded quantities against the physical count and either approves or rejects.
  </Step>

  <Step title="Job is completed or returned">
    On approval the job is completed and its costs are final. On rejection it returns for correction.
  </Step>
</Steps>

<Note>
  Company Admins are included in audit assignment, so an admin can always action an audit regardless of location. If an audit appears with nobody assigned, check that the location has an auditor and that the user's locations are set correctly in Users.
</Note>

## Inventory audits and cycle counts

Physical counts of a location can also be run directly, most commonly from the mobile app while standing in the warehouse or at the truck. Counting a location on a regular cycle, rather than only when a job closes, is what keeps negative balances from accumulating.

<Tip>
  Any negative stock figure is a flag that a count is needed. Work the negatives first when you audit, since they represent movements the system already knows it missed.
</Tip>

For more on how negative inventory is created, see [Pull Material](/jobs/pull-material). For how Ready to Audit fits into the job lifecycle, see [Closing Jobs](/jobs/closing-jobs).

## Related articles

* [Pull Material](/jobs/pull-material) - Understand how negative inventory is created when pulling at zero stock
* [Closing Jobs](/jobs/closing-jobs) - Learn how Ready to Audit triggers the audit workflow before a job closes
* [Service Trucks](/service-trucks/overview) - Run cycle counts on mobile locations from the field