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.