What audit procedure is described by comparing inventory counts to receiving reports?

The audit procedure described by comparing inventory counts to receiving reports is vouching. This process involves verifying and substantiating information reflected in the financial statements by tracing back the reported amounts to underlying documentation or records. In this context, when an auditor compares inventory counts against receiving reports, they are confirming the accuracy and existence of the inventory recorded.

By ensuring that the total inventory amounts coincide with what has been received, auditors can validate the completeness and accuracy of the inventory listing. This is a fundamental aspect of vouching, which helps in establishing that the amounts reported in the financial statements are indeed supported by appropriate evidence.

In contrast, sampling involves selecting a representative subset of items for review rather than comparing totals. Tracing is about following a transaction forward from the source document to the financial records, while analytical procedures are more about assessing financial statement relationships and trends rather than verifying amounts against specific documents. Each of these alternatives serves different purposes in the audit process.