When Auditing the Payroll and Personnel Cycle, the Auditor Should

question 20

Multiple Choice

When auditing the payroll and personnel cycle, the auditor should keep in mind that

• A) since payroll transactions are typically uniform, all companies have the same internal controls over payroll.
• B) the substantive tests of transactions for the payroll cycle are the same for all audit clients.
• C) controls the auditor intends to rely on to reduce assessed control risk must be tested with tests of controls.
• D) the tests of controls and the substantive tests of transactions for payroll cannot be combined.

Understand the concept of the value frontier and its impact on market competition.

Recognize the strategies for increasing the perceived value of a product.

Identify and differentiate between various growth strategies, such as product development, market penetration, market development, and diversification.

Analyze the role of innovation in pushing the value frontier.

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