An auditor is most likely to perform substantive tests of details on payroll transactions and balances when

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An auditor is most likely to perform substantive tests of details on payroll transactions and balances when

a. Cutoff tests indicate a substantial amount of accrued payroll expense.

b. The level of control risk relative to payroll transactions is set at low.

c. Substantive analytical procedures indicate unusual fluctuations in re- curring payroll entries.

d. Accrued payroll expense consists primarily of unpaid commissions.

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Auditing And Assurance Services

ISBN: 9780073527086

7th Edition

Authors: William MessierSteven Glover

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