In most audits, payroll tax expense is not tested because the audit risk does not justify the time required to perform the tests.

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Payroll tax expense is a significant expense for most companies, and it is subject to complex regulations. However, the audit risk associated with payroll tax expense is typically low because the company's payroll system is usually well-controlled and the company is subject to regular payroll tax audits by the government. As a result, auditors often do not test payroll tax expense in most audits.

In Most Audits, Payroll Tax Expense Is Not Tested Because