Henry is seeking your advice on the selection of substantive procedures for the audit of his client, Clash Ltd. Clash Ltd is a specialist outdoor clothing and equipment retailer and has experienced reasonable growth over the past three years, although this growth has come substantially from the clothing section. Sales of camping and climbing equipment are down significantly so far this year in all stores except Brisbane. Early results from audit testing show that controls over the sales process are reasonably effective, resulting in a low to moderate control risk. Henry believes he will need to do some substantive testing of sales, but is unsure about which procedures would be most useful. He has access to Clash Ltd’s monthly sales budgets for the period and results for the eight months of the year to date.

Required

Write a memo to Henry explaining the substantive procedures for sales that he could choose from and which would be most useful in these circumstances.