You have been assigned the auditor in verifying inventory count procedures for a small manufacturing company. In performing the initial walk-through with the site Controller you identify the following issues: Shipping operations will not be completely halted during the physical count and there were be no independent verification of the original inventory count by a secondary team.

(1) Evaluate each of the deficiencies noted. (2) What are the effects on your audit ? (3) What additional audit procedures will you required to perform?