If a client relies on information technology (IT) controls and the auditor plans to assess control risk as low for payroll assertions, the auditor will usually do all of the following, EXCEPT _______.
A)test the effectiveness of manual controls
B)use computer-assisted audit techniques (CAATs) to evaluate the effectiveness of IT application controls
C)test the effectiveness of manual procedures to follow up on exceptions
D)All of the answer choices are correct.

Question

Quizplus · Accepted Answer

If the auditor plans to assess control risk as low for payroll assertions and the client relies on IT controls, then the auditor will not test the effectiveness of manual controls as they are not relied upon. Instead, the auditor will use CAATs to evaluate the effectiveness of IT application controls and test the effectiveness of manual procedures to follow up on exceptions.

If a Client Relies on Information Technology (IT) Controls and the Auditor