Audit tests of payroll are usually not extensive because:

Question

Quizplus · Accepted Answer

Payroll transactions are usually processed through well-controlled payroll systems. The risks associated with payroll transactions are generally lower and more predictable than other transaction cycles such as revenue or inventory. Therefore, the audit tests of payroll are usually not extensive. However, the auditor still needs to perform some audit procedures to ensure the completeness and accuracy of the payroll information.

Audit Tests of Payroll Are Usually Not Extensive Because