Final answer:
Auditing selected inventory on a cyclic schedule is indeed known as cycle counting, which is a method used to maintain accurate inventory records by counting subsets of inventory periodically.
Step-by-step explanation:
The statement that auditing of selected inventory on a cyclic schedule is known as cycle counting is True. Cycle counting is an inventory auditing process where a small subset of inventory, in a specific location, is counted on a specified day. This process differs from traditional physical inventory counting methods that typically require counting all inventory at once, often resulting in business disruptions. By auditing inventory on a cyclic schedule, a company can maintain accurate inventory records and identify errors or discrepancies in inventory levels on a more frequent and manageable basis.