Which one of the following would NOT justify an auditor's decision to spend very little time performing tests of transactions in the payroll and personnel cycle?
A) The new payroll bookkeeper has a much better educational background than the former one.
B) Payroll transactions are uniform and uncomplicated.
C) Employees will detect any underpayments.
D) Payroll transactions are extensively audited by government agencies.

Question

Quizplus · Accepted Answer

The educational background of the payroll bookkeeper does not directly impact the inherent risk or control risk associated with payroll transactions, which are the primary considerations for determining the extent of testing required. The other options (B, C, D) provide reasons that could justify reduced testing due to lower risk or external verification.

Which One of the Following Would NOT Justify an Auditor's