An Auditor Most Likely Would Perform Substantive Tests of Details

question 980

Multiple Choice

An auditor most likely would perform substantive tests of details on payroll transactions and balances when:

• A) Cutoff tests indicate a substantial amount of accrued payroll expense.
• B) The assessed level of control risk relative to payroll transactions is low.
• C) Analytical procedures indicate unusual fluctuations in recurring payroll entries.
• D) Accrued payroll expense consists primarily of unpaid commissions.

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Definitions:

Written Description

A detailed textual depiction or explanation of an object, event, process, or idea, often accompanying patents, research, or literary works.

Generate Discussion

To initiate or stimulate conversation, debate, or exchange of ideas on a specific topic.

Storyboard

A visual representation of a film, animation, or story, laid out sequentially to visualize and plan scenes.

Minimum Viable Product

The most basic version of a product that can be released to the market with enough features to satisfy early adopters.