You have been assigned the inventory observation procedure for the Lo-Hi Supermarket chain . There are multiple stores being counted on the night of December 31, 2017, andy you and eight other members of your audit team are performing simultaneous observations at different unannounced locations . You have arrived on that night with the assignment of  making independent tests of the physical count; () making inquiries of client personnel about counting procedures and (3) observing the client counting procedures.

When you arrive you quickly locate the manager overseeing the count and request from him a count sheet that is being used by one of the client's ten counters . The count manger is at the front of the store with a portable computer and portable printer counters are using electronic instruments to input the counts , which are the uploaded into the computer as the count progresses.

Count procedures that each section will be counted by different counters for multiple small items items to be removed from the shelf and placed back on the shelf when counting is dore the section is counted the sections marked with and the count is brought to the front to upload into the computer store has already been counted are provided.

 Assignment count Your first task is to recount the items found by the counter. you have been asked by your manager to select several items from the shelf and test that count to the sheet provided by the clients. You select count floor to sheet and  sheet to floor. The findings are as follows.

Question: As an auditor, state the appropriate follow up action for the counts observed.