Which of the following types of audit tests is usually emphasized due to a lack of independent third-party evidence related to payroll transactions?
A)Analytical procedures
B)Tests of details of balances
C)Tests of controls
D)Each of the above is emphasized.

Question

Quizplus · Accepted Answer

Tests of controls are usually emphasized in the absence of independent third-party evidence related to payroll transactions. This is because there is a higher risk of fraudulent activities or errors occurring in payroll transactions. Hence, the auditor would conduct tests of controls to ensure that the internal controls related to payroll processing are effective and reliable. Analytical procedures and tests of details of balances may also be performed, but they are not specifically emphasized due to the lack of independent third-party evidence.

Which of the Following Types of Audit Tests Is Usually