METRC Audit Prep: A Manager's Checklist

What Auditors Are Actually Looking For

A METRC audit is straightforward in principle: does your physical inventory match your METRC on-hand quantities? Auditors typically select 10-20 package UIDs at random, pull the physical product, weigh it, and compare against what METRC says you should have.

They also review open and closed manifests, adjustment logs with supporting documentation, and employee access records. If everyone on your team has current METRC badges and no one who left six months ago is still in the system, you have already passed part of the audit before it starts.

30 Days Before the Audit

Pre-audit preparation is not about hiding problems — it is about finding and fixing them before the auditor does. A self-identified and corrected discrepancy looks very different from one discovered during an official review.

• Run a full physical count against METRC on-hand quantities and fix discrepancies now
• Review all open manifests and close anything that should be closed
• Audit the last 90 days of adjustment logs — any adjustment without documentation is a potential violation
• Verify every active employee has a current METRC badge and no terminated staff retain access
• Pull your METRC violation history — know what you have been flagged for before so you can show improvement

The Night Before

A calm, organized presentation of your compliance records changes the tone of the audit. Auditors notice when a manager scrambles to find documentation.

• Finalize all open manifests
• Run a final full inventory count and reconcile to METRC
• Print and organize the last 90 days of transfer manifests by date
• Have your employee badge registry ready and current
• Brief your team: be professional, answer only what is asked, redirect technical questions to the manager on duty

Violation Severity — Know the Spectrum

Not all violations are equal. Understanding what triggers which severity level helps you prioritize your pre-audit work and respond proportionately after.

• Minor (typically correctable on-site): stale open manifests, missing adjustment reason codes, employee access not updated after termination
• Moderate: inventory discrepancy within the state threshold on a single package, missing documentation for a specific adjustment
• Serious: inventory discrepancy above state threshold, same-day sales not logged, unaccounted product above a gram threshold

After the Audit

Get the violation report immediately — do not wait for the mail. Most states have an online portal. Read every line before deciding on a response.

For minor violations, resolve and document the fix within the correction period (typically 10-30 days). For moderate violations, write a corrective action plan: what happened, why it happened, and what changed to prevent recurrence. For serious violations, consider engaging a cannabis compliance attorney before responding.

Assume a follow-up audit within 6-12 months. Use that window to build the processes that make the next one boring.