Audit tests of payroll are usually not extensive because:

Question

Quizplus · Accepted Answer

Payroll is a routine and repetitive process with a lower level of inherent risk. Payroll transactions are also subject to regulatory requirements, which are usually monitored closely by management. Therefore, audit tests of payroll are usually not extensive compared to other accounts. However, auditors still need to perform sufficient audit procedures to ensure that payroll is accurately recorded and reported in the financial statements.

Audit Tests of Payroll Are Usually Not Extensive Because