When the auditor performs tests of control regarding the policy counting materials received from the supplies, the auditor most likely:

• A. Inspect the receiving reports.
• B. Verify that cash-vouchers are accompanied by receiving reports.
• C. Inquire with the receiving clerk of whether count of incoming deliveries is being made.
• D. Observe the receiving section as deliveries are received.

Answer: (B)

The key idea is testing whether the control over payments for goods received is actually being enforced. A common control in the purchases/payables process is that every cash disbursement is supported by a receiving report. This ties the payment to evidence of goods actually received and helps ensure amounts are accurate and legitimate.

Verifying that cash vouchers are accompanied by receiving reports directly tests that policy in action. If vouchers lack a receiving report, the control is not operating for that payment, increasing the risk of paying for goods not received or for incorrect quantities. This test confirms both existence and evidence of receipt, which is central to preventing misstatements in both the inventory-related and accounts payable areas.

Inspecting receiving reports alone shows evidence exists but doesn’t prove the policy is applied to the payout process across all disbursements. Inquiring with the receiving clerk and watching the receiving area are useful for understanding the process, but they don’t directly verify that every cash voucher is supported by a receiving report, which is the concrete control being tested.