In obtaining an understanding of inventory procedures for a small manufacturing company, the auditor obtains a copy of the client's inventory instructions and reviews them with the controller before the physical examination. Two deficiencies are identified:
(1) shipping operations will not be completely halted during the physical examination, and (2) 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 auditor's observation of inventory.