§ 5424. Inventory Reconciliation
(a) A retailer shall perform a reconciliation of its inventory at least once every 14 days.
(b) A retailer shall verify that the retailer’s physical inventory matches the retailer’s records
pertaining to inventory.
(c) The result of inventory reconciliation shall be retained in the retailer’s records and shall be
made available to the Bureau upon request.
(d) If a retailer identifies any evidence of theft, diversion, or loss, the retailer shall notify the
Bureau and law enforcement pursuant to section 5036 of this division.
(e) If a significant discrepancy as defined in section 5034 of this division is discovered between a
retailer’s physical inventory and the retailer’s inventory records, the retailer shall notify the
Bureau and law enforcement pursuant to section 5036 of this division.
Authority: Section 26013, Business and Professions Code. Reference: Section 26160, Business
and Professions Code.