Many companies use outside payroll services to process payroll. Which of the following regarding the auditors responsibilities is most correct regarding their reliance on the internal controls of these outside payroll services?
A) must
B) cannot
C) rarely
D) can often

Question

Quizplus · Accepted Answer

Auditors can often rely on the internal controls of outside payroll services, but they must still perform some level of testing to ensure accuracy and completeness of the payroll transactions. The degree of testing will depend on the nature and complexity of the payroll process and the level of risk associated with it.

Many Companies Use Outside Payroll Services to Process Payroll