What do “red flags” during inventory audits typically indicate?

"Red flags" during inventory audits are indicative of discrepancies that require further investigation. This term refers to any irregularities or anomalies that deviate from expected inventory counts or records. Such discrepancies can arise from various factors, such as miscounts, loss of material, incorrect documentation, or potential theft. When these inconsistencies are identified, they signal a need for a deeper examination to understand the underlying cause and ensure accuracy in inventory management.

In contrast, the other options do not accurately capture the significance of red flags. Errors in loading procedures, while serious, are more about operational mistakes rather than indications of discrepancies during an audit. Excess inventory available does not represent a discrepancy in the context of an audit but rather an accumulation of stock. Completion of safety checks is unrelated to inventory counts and does not address the specific concerns raised by red flags during an audit process.