AUDITS AND CYCLE COUNTS Clause Samples
The "Audits and Cycle Counts" clause establishes the right and procedures for conducting regular inspections and inventory verifications of goods or records. Typically, this clause allows one party—often the buyer or a third-party auditor—to periodically review inventory levels, storage conditions, or compliance with contractual requirements, either through scheduled cycle counts or more comprehensive audits. By setting clear expectations for how and when these checks occur, the clause helps ensure inventory accuracy, detect discrepancies early, and maintain transparency between the parties.
AUDITS AND CYCLE COUNTS. (i) Buyer and Seller will jointly conduct an initial audit to verify receipt of the Parts and prepare an accurate list of the Parts which comprise the initial Consignment Inventory. If the initial audit reveals discrepancies between the inventory received and the target stocking level, such discrepancies will be resolved promptly.
(ii) Seller has the right to audit Consigned Inventory with thirty (30) days advance notice to Buyer, on a mutually agreed to date, and shall perform a complete audit at least once per calendar year. Buyer reserves the right to participate in these audits. The financial responsibility resulting in any discrepancies of the Consigned Inventory shall be negotiated in good faith by the parties. Audit results will be published within 3 business days to the Buyer.
AUDITS AND CYCLE COUNTS. (i) Buyer and Seller will jointly conduct an initial audit to verify receipt of the Parts and prepare an accurate list of the Parts which comprise the initial Consignment Inventory. If the initial audit reveals discrepancies between the inventory received and the target stocking level, such discrepancies will be resolved promptly.
(ii) Seller has the right to audit Consigned Inventory with thirty (30) days advance notice to Buyer, on a mutually agreed to date, and shall perform a complete audit at least twice per calendar year. Buyer INTEL CONFIDENTIAL Page 41 of 44 *** Confidential material redacted and submitted separately to the Commission CONFIDENTIAL TREATMENT REQUESTED – REDACTED COPY reserves the right to participate in these audits. The financial responsibility resulting in any discrepancies of the Consigned Inventory shall be negotiated in good faith by the parties. Audit results will be published within 3 business days to the Buyer.