When control risk is assessed as low for assertions related to payroll, substantive tests of payroll balances most likely would be limited to applying substantive analytical procedures and
A) Observing the distribution of paychecks.
B) Footing and crossfooting the payroll register.
C) Inspecting payroll tax returns.
D) Recalculating payroll accruals.

Question

Quizplus · Accepted Answer

When control risk is low, auditors rely more on analytical procedures and less on detailed tests. Recalculating payroll accruals is a substantive test that can be efficiently performed to verify the reasonableness of payroll balances.

When Control Risk Is Assessed as Low for Assertions Related