When Payroll Is Outsourced and the Auditor Relies on a SAS

question 18

True/False

When payroll is outsourced and the auditor relies on a SAS 70 Type II audit report, dual testing is not relevant.

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Definitions:

Income Allocated

Allocation of income refers to the distribution of earnings among various accounts or entities, often for tax, investment, or accounting purposes.

Liquidation

The process of dissolving a company by selling off its assets to pay off liabilities; any remaining assets are then distributed to shareholders.