Tests of balances. Your client is Nicholas van Myra Central, a shopping centre with 30 store tenants. All leases with the store tenants provide for a fixed rent plus a percentage of sales, net of sales taxes, in excess of a fixed dollar amount computed on an annual basis. Each lease also provides that the landlord may engage a Chartered auditor to audit all records of the tenant for assurance that sales are being properly reported to the landlord.

You have been requested by your client to audit the records of the JaiLai Chinese.

Restaurant to determine that the sales, totaling 725,000 for the year ended December 31, 20X4, have been properly reported to the landlord. The restaurant and the shopping centre entered into a five-year lease on January 1, 20X4. The JaiLai offers only table service. No liquor is served. During meal times there are four or five waitresses in attendance, who prepare handwritten prenumbered restaurant checks for the customers. 

Payment is made at a cash register, staffed by the proprietor, as the customer leaves. All sales are for cash.

The proprietor also is the bookkeeper. Complete files are kept of restaurant checks and cash register tapes. A daily sales book and general ledger are also maintained.

Required:

List the auditing procedures that you would employ to test the annual sales of the JaiLai Chinese Restaurant. (Disregard vending machine sales and counter sales of chewing gum and candy, and concentrate on the overall checks that would be appropriate.)