This report responds to a proposal for an internal audit of the library collection at Virginia Commonwealth University (VCU) and describes various measures that University Library Services (ULS) has already implemented to automate the inventory process and improve security. Introductory materials provide an executive summary and background information. The latter includes both a brief review of national library practice relating to inventories of academic library collections and brief descriptions of alternatives to a complete inventory. The main body of the report is divided into four sections: (1) current developments toward a book and serials inventory at VCU (Autolink Project, retrospective conversion project, insertion of security strips, adding journal holdings to the online catalog, use of the Faxon SC10 System, and a summary of the current status of the book and serials collections); (2) purposes of an inventory; (3) determining the nature of the current problem at the VCU library (operational imperatives and assumptions); and (4) recommendations (book inventory, serials inventory, special inventories). Appendixes contain Autolink statistics and a chart summarizing the inventory status of the library collections. (16 footnotes) (CGD)