Substantive test of details on payroll transactions means the details checking of records of employees, attendance, rate of wages and compare the wage records daily. Substantive test of details on payroll transactions is required when internal control is weak. To choose: The situation when auditor is likely to apply a substantive test of details on payroll transactions.

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Chapter 12, Problem 12.23MCQ

To determine

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Substantive test of details on payroll transactions means the details checking of records of employees, attendance, rate of wages and compare the wage records daily. Substantive test of details on payroll transactions is required when internal control is weak.

To choose: The situation when auditor is likely to apply a substantive test of details on payroll transactions.

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