Question: * 1 8 . ( LO 1 2 ) An auditor may plan to test controls in the payroll process because, among other factors: the
LO An auditor may plan to test controls in the payroll process because, among other factors: the chance of employee fraud is remote. outside governmental auditors spend considerable time investigating the payroll area in most companies. audit risk in the area relates primarily to the hiring of competent personnel. payroll transactions are generally routine and processed in a high volume, which makes controls effective for management to employ.
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