In the substantive audit procedures for payroll where the control risk is set at low, an auditor most likely would
A) Verify that checks representing unclaimed wages are mailed.
B) Trace individual employee deductions to entity journal entries.
C) Observe entity employees during a payroll distribution.
D) Compare payroll costs with entity standards or budgets.

Question

Quizplus · Accepted Answer

When control risk is low, auditors rely more on analytical procedures like comparing payroll costs with standards or budgets, as these are efficient and effective for identifying discrepancies.

In the Substantive Audit Procedures for Payroll Where the Control