Question

Which of the following ________ procedures would an auditor most likely perform to test controls relating to management's assertion about the completeness of cash receipts for cash sales at a retail outlet?

Answer 1

An auditor would perform observation, reconciliation, and sampling procedures to test controls for the completeness of cash receipts for cash sales at a retail outlet.

Step-by-step explanation:

An auditor would most likely perform the following procedures to test controls relating to management's assertion about the completeness of cash receipts for cash sales at a retail outlet:

1. Observation: The auditor may observe the cash handling process, including how cash is counted and recorded, to ensure it is done accurately and in compliance with established controls.
2. Reconciliation: The auditor may reconcile the cash register tapes or other records with the actual cash deposits made by the retail outlet to verify that all cash receipts have been properly recorded.
3. Sampling: The auditor may select a sample of cash sales transactions and trace them from the point of sale to the recording of the transaction in the accounting records, ensuring that no transactions are omitted or misrepresented.