Following are some of the tests of controls and substantive tests of transactions procedures often performed in the human resources and payroll cycle. (Each procedure is to be done on a sample basis or using audit software.)

Identify whether each of the procedures is primarily a test of control or a substantive test of transactions.

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Procedures Reconcile the monthly payroll total for direct manufacturing labour with the labour cost distribution. Examine the time card for the approval of a foreman. Recompute hours on the time card and compare the total with the total hours for which the employee has been paid. Perform a surprise payroll payoff and observe employees picking up and signing for their cheques. Compare the employee name, date, cheque number, and amounts on cancelled cheques with the payroll journal. Trace the hours from the employee time cards to job tickets to make sure that the total reconciles, and trace each job ticket to the job cost record. Use audit software to account for the sequence of payroll cheques in the payroll journal. Test of Control or Substantive Test?