Final answer:
To test controls relating to management’s assertion concerning the completeness of sales transactions, auditors typically review documentation, perform tests on a sample of transactions, and reconcile recorded transactions.
Step-by-step explanation:
To test controls relating to management’s assertion concerning the completeness of sales transactions, auditors typically perform the following procedures:
Reviewing the company's sales transaction documentation, such as sales invoices and shipping documents, to ensure that all transactions have been properly recorded.
Selecting a sample of sales transactions and performing tests to verify that the recorded transactions actually occurred and were properly authorized.
Reconciling the sales transactions recorded in the general ledger to the sales journal or other subsidiary sales records to ensure all transactions are included.
By conducting these procedures, auditors can gain assurance on the completeness of sales transactions and determine if appropriate controls are in place to minimize the risk of incomplete or unauthorized transactions.