Before the physical examination, the auditor obtains a copy of the clients inventory instructions and reviews them with the controller. In obtaining an under standing of inventory procedures for a small manufacturing company, these deficiencies are identified: Shipping operations will not be completely halted during the physical examination, and there will be no independent verification of the original inventory count by a second counting team. Evaluate the importance of each of these deficiencies and state its effect on the auditors observation of inventory.

500 word