You are responsible for the audit of payroll. You have assessed control risk as low for the payroll transactions. Substantive tests of payroll would most likely be limited to analytical procedures and:
A) tracing employee time records to the payroll transaction file.
B) recomputing an entire payroll period and compare to the client's records.
C) tracing amounts in the payroll transaction file to the payroll master file.
D) recalculating payroll accruals.

Question

Quizplus · Accepted Answer

When control risk is assessed as low, auditors rely more on analytical procedures and limited substantive tests. Recalculating payroll accruals is a focused substantive test that complements analytical procedures without extensive detail testing.

You Are Responsible for the Audit of Payroll