When Control Risk Is Assessed as Low for Assertions Related

question 35

Multiple Choice

When control risk is assessed as low for assertions related to payroll, substantive tests of payroll balances most likely would be limited to applying substantive analytical procedures and

• A) Observing the distribution of paychecks.
• B) Footing and crossfooting the payroll register.
• C) Inspecting payroll tax returns.
• D) Recalculating payroll accruals.

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Definitions:

State-dependent

Memory or learning that is tied to the physical or mental state in which it was acquired, influencing recall under similar states.

Recalled

Brought back into awareness or remembrance; also refers to the process of a company retrieving defective products from consumers.

Drunk

A state of intoxication caused by the consumption of excessive alcohol, impairing cognitive and physical functions.

Sober

Not affected by alcohol; not drunk, and more broadly, serious, sensible, and solemn.