Smith, the senior audit associate in charge of the audit of Raymond's Mfg$.,$ observed the client's physical inventory count held on the last day of the company's fiscal year, August $31,$ Year $1.$ Smith identified some differences in quantity of items between his count and the quantity recorded on the client's inventory listing.

Complete the task below by using the information provided in the exhibits above. For each variance identified, select from the option list provided the auditor's most likely response. A response may be used once, more than once, or not at all.