Once the auditor determines that the company's policy for accruing wages is consistent with prior years, the appropriate audit procedure to test for accuracy and cutoff is
A) recalculating the client's accrual.
B) performing extensive tests of controls.
C) performing extensive tests of details.
D) none of the above.

Question

Quizplus · Accepted Answer

Recalculating the client's accrual is the appropriate audit procedure to test for accuracy and cutoff once it is determined that the company's policy for accruing wages is consistent with prior years. This allows the auditor to verify that the amounts recorded are correct and that transactions are recorded in the correct accounting period.

Once the Auditor Determines That the Company's Policy for Accruing