Tom Majors, an entry-level staff auditor, has been assigned to observe the physical inventory of the Lewiston Chemical Company. Lewiston processes and distributes industrial chemicals.

Upon arriving at Lewiston's manufacturing plant. Majors learns that there are 15 above ground cylindrical-shaped storage tanks, each 50 feet tall, and there are three rectangular storage tanks located underground. The above ground tanks are connected in lots of five, and there are three different chemicals at the site; the underground pipes stretch over two miles in length. The underground pipes can be accessed at each of the tanks, and also at various access ports throughout the plant.

In addition to the tanks and pipes, there is a shipping/receiving depot. Three separate pipelines run to the depot so that each of the chemicals can be accessed for shipping and receiving. Tank trucks are used to deliver and ship chemicals to and from the depot.

Required:

1. Indicate the special audit problems Majors faces when observing Lewiston's chemical inventory.

2. Discuss what specialist(s) Majors should consider using to assist in the physical inventory observation. State specifically what problems the specialist(s) will be assigned to solve.