Auditors must understand the business functions and documents and record for the payroll and personnel cycle before they can assess control risk and design test of controls and substantive tests of transactions.

Question

Quizplus · Accepted Answer

This statement is true. Auditors need to have a thorough understanding of the processes and paperwork involved in the payroll and personnel cycle in order to properly evaluate control risk and determine appropriate testing procedures.

Auditors Must Understand the Business Functions and Documents and Record