Q:

What is an example of a test of control or substantive test of transactions that can be performed using CAATs for payroll transactions?

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An auditor suspects that an employees gross pay, deductions and net pay are computed incorrectly, and he wants to check the accuracy of the transaction
In such a situation, the auditor can check the accuracy of the payroll transaction by using CAAT. He can test the compute logic used to record and calculate the payroll of the employee, and he can recompute the calculation of gross pay, deductions, and the net pay of the employee

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