For the question below,

Choose right answer;

Explain why the response selected is correct;

Explain why the alternate response is incorrect.

Which of the following statements relating to controls in the payroll application is most correct?

A. A valid code test that all employee numbers entered for the payment must be from an existing table of authorised employees in the payroll application, which is found to be effective by the auditor, can reduce audit risk related to the occurrence of wages expense.

B. A limit test that an employee's hour do not exceed 50 hours per week in the payroll application, which is found to be effective by the auditors, can reduce audit risk related to the occurrence of wages expense.