Overview
1. Auditing
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Depending on the industries you audit, you may find yourself performing inventory counts of some interesting inventories! For example, at a large steakhouse chain, one auditor reported that he spent six hours in a large freezer counting steaks. He shared, “I had to use pencil to write my counts because the ink in my pen froze solid.”
Other fun examples include counting chickens at a poultry farm, diamonds at a jeweler, pills at a pharmacy, and frozen waffles.
For this week’s discussion, share an example of a “peculiar” inventory experience that an auditor might encounter. Include a brief description of the company, the inventory that will be counted, any inventory management controls that you would expect the client to have, and if you would want to be involved in the inventory count.
2. Auditing
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Aaron Squires
Dec 23 11:55am| Last reply Dec 24 3:30pm
Reply from Aaron Squires
Hi Class,
A specific peculiar inventory experience that comes to mind involves UPS Healthcare, specifically their cold chain logistics operations that store and ship biologics and vaccines at subzero temps. Due to how important and expensive these products are, you can imagine the rigorous inventory management controls that are in place.
I can relate to the auditor in the question who had to use a pencil because their ink froze in the steakhouse freezer. While I have never worked as an auditor, I have worked with auditors and been through some of the process, and I have most certainly worked in these conditions myself as UPS Healthcare Supervisor. I used to regularly work in an environment that stayed around -30C for hours a day. I quickly learned that normal supplies fail. Just like in the question normal ink pens don't work. You have to either use a pencil (not allowed on controlled documents) or a pressurized pen in those conditions. Also, funny enough regular packing tape fails at those temps as well.
Because I know the challenges of that environment, I know that the controls in place rely heavily on sophisticated Warehouse Management Systems rather than manual tagging. You can't rely on physical tags sticking to boxes when the adhesive fails, so the inventory is typically managed with scanners that can withstand the cold. This ensures strict tracking of location and temperature integrity without physical labels.
As to whether I would want to be involved in this inventory count? NO, I have spent hours in -30C before, I know brutal that cold is, and I do not want to go back to it if I can avoid it!
3. Auditing
(300 per DB reply ) (APA format)
(No use of Artificial Intelligence) (No Plagiarism)
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Dakota Rognlie
Dec 23 11:42am| Last reply Dec 24 3:32pm
Reply from Dakota Rognlie
That story about the frozen pen at the steakhouse is a classic, it really proves that auditing is often more about physical endurance than just spreadsheets.
For this week's post, I'm going with a local powerhouse that every Idahoan knows: The J.R. Simplot Company, specifically their Land & Livestock division. If you've ever driven toward Grand View, ID or taken the back roads through the Snake River Canyon, you've definitely smelled this inventory before you saw it. Their Grand View feedlot is a beast; it has a one-time capacity of about 150,000 head of cattle, making it one of the largest in the nation (Tobier, 2024).
The Inventory: "Assets on the Hoof" The "peculiar" inventory here is the livestock. Simplot provides custom cattle feeding services where they manage and grow cattle for various owners, meaning the inventory is massive and constantly changing (J.R. Simplot Company, 2025). Unlike counting boxes in a warehouse, these assets are alive and constantly moving. The process is a logistical nightmare, you can't just walk around with a clipboard. Auditors often have to perform "gate cuts," where you stand by a narrow chute and use a hand clicker while the cowboys move the cattle from one pen to another. It's loud, dusty, and you have to account for "shrinkage" (weight loss from stress) and "death loss," which is the unfortunate reality of managing 150,000 living things (National Cattlemen's Beef Association, n.d.).
Expected Inventory Management Controls for a company as sophisticated as Simplot, the controls are surprisingly high-tech:
- RFID Ear Tags: Each animal has an electronic ID (EID) tag. I'd expect a control where the digital "headcount" in their database is reconciled against the physical scans whenever the cattle are moved or treated (Cattlytics, 2025).
- Feed-to-Consumption Logs: Simplot uses a specific steam-flaked corn mix and specialized supplements (J.R. Simplot Company, 2025). A key control would be monitoring the "feed-to-head" ratio. If a pen of 400 cattle is suddenly eating like 300, it's an immediate red flag that the inventory count is off or there's a health crisis.
- eBusiness Systems: Since they deal with so many outside owners, they use electronic data interchange (EDI) to handle inventory inquiries and adjustments automatically (J.R. Simplot Company, 2025).
Would I want to be involved? Honestly, I'd do it once just for the "Idaho" experience. However, given recent headlines about environmental lawsuits at the Grand View site, I'd be especially focused on the "Control Environment", if a company is facing legal heat for oversight issues, it usually means an auditor needs to dig a little deeper into their records (Tobier, 2024). I'd show up in my oldest pair of boots and a heavy Carhartt jacket that I'd probably leave in the garage for a month afterward!
What do you all think, would you trust the electronic RFID database for the count, or would you be the auditor who insists on a manual "gate cut" count to be 100% sure the cattle are actually there?
Resources:
Cattlytics Beef: Smart cattle record & herd management app. Cattlytics Beef | Smart Cattle Record & Herd Management App. (n.d.). https://uncommonfarms.com/software-solutions/cattlyticsLinks to an external site.
J.R. Simplot Company. (2025). Conducting eBusiness. https://www.simplot.com/company/ebusinessLinks to an external site.
J.R. Simplot Company. (2025). Custom cattle feeding services. https://www.simplot.com/livestock/custom-cattle-feedingLinks to an external site.
J.R. Simplot Company. (2025). Feed and Supplements. https://www.simplot.com/livestock/sws/products/feed-supplementsLinks to an external site.
National Cattlemen's Beef Association. (n.d.). U.S. cattle industry feedyard audit. https://www.ncba.org/Media/NCBAorg/Docs/full_feedyard-audit-2021.pdfLinks to an external site.