Fresh Food People Store Inventory

Executive summary

This report is playing a role as a memorandum of inventory inspection of one of The Fresh Food People stores. The chosen store is Woolworth store located at MacArthur Central. There are two members of audit team, who are conducting unofficial inspection of the store inventory and observation is a vital method in place.

It is observed this is a busy store, which provides customers a diversity of product category. Each product has its own risks that can possibly happen to store’s inventory management, such as risk of contamination, loss sales due to thieves or shoplifters.

Based on observation, there are some procedures related to inventory stocktaking that team members expect the store management can undertake. Some possible

1.2 Method

This report is providing information mostly based on the observation of team members. In order to get a general understanding of inventory count at Fresh Food People store, the observation process was conducted both individually and as a whole team. All information is recorded carefully, then analysed and discussed by team members.

1.3 Limitations

One of the limitations of this report is team members could not observe what is indeed going on inside the storage areas. Moreover, bias information might occur due to the observation was made in couple of weeks, which might not help draw completed picture of the store inventory’s situation.

1.4 Assumptions

It is assumed that we are playing the role as senior auditors of Large and Complex Auditing, who are supposed to write a memorandum for their inspection of Fresh Food People store for the purpose of making an assessment of requirements for its inventory count. Noted that the inspection is mostly based on team members’ observation.

1.5

The store is located in the central of Brisbane CBD, which is near train and bus station as well as building offices and universities. Due to its convenient location, this Fresh Food People store has a full line of products, from household products, seafood, bakery, and butcher to grocery. It is observed that Woolworths store at MacArthur Central is more crowded from 3pm to 6pm. Customers can easily pop in the store to quickly buy some foods or needed products after work/ class or just on their way to train/ bus stations. Around lunchtime, customers tend to buy more fresh fruits and ready-to-eat foods; meanwhile household products are consumed more at