The nature, extent, and timing of substantive tests of payroll transactions vary depending, in part, on assessed control risk.

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The nature, extent, and timing of substantive tests of payroll transactions are dependent on assessed control risk. This means that if control risk is deemed to be high, more extensive substantive tests will be necessary to determine the veracity of payroll transactions. Alternatively, if control risk is deemed to be low, less extensive substantive tests will be necessary, as there is already a higher level of assurance that the transactions are accurate.

The Nature, Extent, and Timing of Substantive Tests of Payroll