Many companies use outside payroll services to process payroll.Which of the following regarding the auditor's responsibilities is most correct regarding their reliance on the internal controls of these outside payroll services?
A)Must
B)Cannot
C)Rarely
D)Can often

Question

Quizplus · Accepted Answer

The auditor can often rely on the internal controls of outside payroll services, but they still need to assess the effectiveness of those controls and perform certain audit procedures to ensure accuracy and completeness of payroll transactions. The extent of the reliance and audit procedures may vary based on the level of risk and materiality of payroll to the financial statements.

Many Companies Use Outside Payroll Services to Process Payroll