Problem

An auditor most likely would perform substantive procedures on payroll transactions and ba...

An auditor most likely would perform substantive procedures on payroll transactions and balances when

A. Cutoff tests indicate a substantial amount of accrued payroll expense.

B. The assessed level of control risk relative to payroll transactions is low.

C. Analytical procedures indicate unusual fluctuations in recurring payroll entries.

D. Accrued payroll expense consists primarily of unpaid commissions.

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