On most audits, the calculation for payroll tax expense is costly and is not necessary unless analytical procedures indicate a problem that cannot be resolved through other procedures.

Question

Quizplus · Accepted Answer

Payroll tax expense is typically calculated based on the company's payroll tax rates and employee earnings. However, if there are no indications of issues with payroll taxes during the audit, the cost of performing this calculation may outweigh the benefits. In this case, other procedures such as reviewing payroll records and testing internal controls may be sufficient to ensure the accuracy of the financial statements.

On Most Audits, the Calculation for Payroll Tax Expense Is