An auditor is most likely to perform substantive tests of details on payroll transactions and balances when
- Cutoff tests indicate a substantial amount of accrued payroll expense.
- The level of control risk relative to payroll transactions is set at low.
- Substantive analytical procedures indicate unusual fluctuations in recurring payroll entries.
- Accrued payroll expense consists primarily of unpaid commissions.
C. substantive analytical procedures indicate unusual fluctuations in recurring payroll entries
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