What should stock in sight be adjusted by inspecting?

The correct approach for adjusting stock in sight is to inspect the ledgers and journals. This method provides a comprehensive view of the stock records, ensuring that all transactions are accounted for accurately. Ledgers and journals contain detailed entries of stock purchases, sales, and adjustments that reflect the true status of inventory levels. By reviewing these documents, a public adjuster can identify discrepancies, such as unrecorded sales or returns, thus gaining a clearer picture of the actual stock in sight.

In contrast, limiting the inspection to only the physical stock does not account for any discrepancies that may exist in the financial records. Physical stock checks are necessary but should be supplemented with financial documentation for a complete assessment. Sales invoices, while providing information on transactions, do not give a full account of inventory levels, as they may not include adjustments or returns. Likewise, employee inventory lists might contain information, but they are not official financial documents and may lack the rigor necessary for accurate stock adjustments. Thus, examining the ledgers and journals is the most effective and recommended method for accurately adjusting stock in sight.