An auditor most likely would perform substantive procedures on payroll transactions and balances when
A)Cutoff tests indicate a substantial amount of accrued payroll expense.
B)The assessed level of control risk relative to payroll transactions is low.
C)Analytical procedures indicate unusual fluctuations in recurring payroll entries.
D)Accrued payroll expense consists primarily of unpaid commissions.

Question

Quizplus · Accepted Answer

Substantive procedures are performed when there are indications of potential misstatements, such as unusual fluctuations in payroll entries identified through analytical procedures.

An Auditor Most Likely Would Perform Substantive Procedures on Payroll