perpetual inventory count

Short answer is "no" to both your questions. This is assumed knowledge of MA/F2. It is inventory records that are described as perpetual when they show every movement in/out and balance. Perpetual records facilitate "continuous stock-checking" i.e. counting items at any time. For a continuous stock-checking system to be an effective control, all items must be counted at least once a year - all counts must be documented - and the follow-up of all discrepancies documented and resolved. If the auditor's testing of the effectiveness of stock-checking is satisfactory, there will be no need for a full physical count at the year end as quantities can be taken to be the balances on the inventory records. If the control is lax and not effective, a full physical count would be required to ascertain year-end quantities.

Thank you very much for your help. It is very clear now.

You are very welcome!