There is very little opportunity for confirmation from third parties of balance sheet accounts related to the payroll and personnel cycle.

Question

Quizplus · Accepted Answer

The payroll and personnel cycle involves sensitive data related to employees' salaries, benefits, and personal information. Due to privacy concerns, third-party confirmation of these accounts is often not feasible, making it challenging to verify the accuracy of the balances reported on the balance sheet. However, auditors may perform other tests and procedures to mitigate the risk of misstatements in these accounts.

There Is Very Little Opportunity for Confirmation from Third Parties