Lion Steel Stores Inc.(LSI) is a golfing equipment and supplies store. The fiscal year-end is July 31.

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Question:

Lion Steel Stores Inc.("LSI") is a golfing equipment and supplies store. The fiscal year-end is July 31. You are the audit staff assigned to observe the July 31, 2021 inventory count. Before you attend the inventory count, you are provided with a copy of the following inventory count instructions that have been provided to all the counters:

•All counters must print their name and sign each sheet that they use.

•The sheets are already marked for each shelf in the warehouse. Make sure to only record inventory on the proper inventory sheet for that shelf. For example, do not record inventory from shelf 31-A on a sheet marked as 31-B, and so on.

•A number of items will be on the storeroom floor marked for customers to try as demonstration goods. Do not count items marked as "demo" or "display".

•Everyone must take their lunch break and morning break at the same time during the count.

•Turn in all count sheets, including sheets that are not used.

•Record the inventory part number, the quantity, and note any indications of damage on the count sheet.

•If an item looks obsolete, estimate the new value and enter that on the count sheet.

•The count will start at 8:00 a.m. Everyone must be in attendance at 7:00 a.m. to review the count instructions.

•The shop supervisors will be available in the warehouse if you encounter any problems and to collect completed count sheets. Empty sheets are to be turned in when you have completed your area.

•Try to count everything quickly. If a sales clerk wants to remove an item for sale to a customer, be sure to count it first.

Required

Identify three strengths in the inventory count procedures at LSI [1 mark each], and explain why each is a strength [1 mark each].