Question $3$

You are performing a predictive substantive analytical procedure $($SAP$)$ to test the existence and accuracy of an entity's payroll expense and determine that average wage growth is an input to your SAP.

Which of the following procedures might you perform to evaluate the relevance of the average wage growth for the entity used in your SAP?

Confirm the average wage growth with the service organization that processes the entity's payroll expenses.

Agree the average wage growth to the prior year audited wage growth.

Consider whether average wage growth is an appropriate factor to consider when developing an expectation for payroll expense.

Test management's controls over the average wage growth for the period.