When an Auditor Sets Control Risk Low, Sufficient Evidence Can

question 11

Essay

When an auditor sets control risk low, sufficient evidence can be obtained for most payroll accounts through an understanding of internal controls, substantive analytical procedures, and tests of details of transactions. However, there are several accounts in the payroll cycle that may require more attention. Name the accounts and explain why the additional testing is necessary.

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Definitions:

Pseudocode

A notational system for algorithms that combines elements of programming languages and natural language, intended to be readable by humans.

Error Handling

The part of a problem statement where programmers describe what the program should do if the input data is invalid or just gibberish.

Source Code

Source code is the set of instructions and statements written by programmers in human-readable programming languages that are compiled or interpreted to create executable programs.

Binary Decision

A binary decision is a choice between two alternatives, often represented in computing and mathematical logic as 1 or 0, true or false.