Accounting · Auditing and Assurance
A company has a fully automated payroll system where wages are calculated, paid, and journalised automatically based on authorised weekly hours input. To test the control that only valid employees are paid, the auditor plans to use a Computer-Assisted Audit Technique (CAAT). Which of the following CAAT procedures is the most effective?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Observe the payroll manager entering the weekly hours into the system.
- 2Use audit software to stratify the payroll and select the largest payments for detailed manual review.
- 3Use audit software to select a sample of payments and vouch them to a manual list of new starters.
- 4Use test data to input a new, fictitious employee record and check if the system attempts to process a payment.✓
Correct answer
Use test data to input a new, fictitious employee record and check if the system attempts to process a payment.
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