Audit tests of payroll are usually not extensive because:

Question

Quizplus · Accepted Answer

Payroll is a routine and repetitive process, and often the systems in place are well-designed and automated with internal controls. Therefore, audit tests of payroll do not need to be as extensive as tests of other accounts, such as inventory or accounts receivable. However, auditors still need to obtain sufficient evidence to support the accuracy and completeness of payroll transactions, but this can often be achieved through sampling and testing of key controls.

Audit Tests of Payroll Are Usually Not Extensive Because