An auditor may best test commissions expense for salespeople when control risk is low by performing which of the following procedures?
A)Analytical procedures.
B)Tagging and tracing.
C)Alternative procedures.
D)Subsequent proof of cash.

Question

Quizplus · Accepted Answer

Analytical procedures are effective in environments with low control risk because they allow the auditor to evaluate financial information through analysis of plausible relationships among both financial and non-financial data. This can be particularly useful for testing commissions expense, as it involves comparing the expense to sales levels and trends, which should align with expectations in a low control risk setting.

An Auditor May Best Test Commissions Expense for Salespeople When