Alyssa Ghose is auditing payroll accruals for a manufacturing company. The client has accrued payroll taxes, accrued vacation pay, and accrued bonuses for salespersons as of the end of the fiscal year. Alyssa performed the following audit procedures.
1. Compared all accrual balances in the current year to the prior year and noted no significant fluctuations.
2. Traced the subsequent payment of payroll taxes to the cash disbursements journal and the bank statement.
3. Reviewed a sample of contracts with salespersons to verify the bonus formula.
4. Reviewed cancelled checks for a sample of checks disbursed after year end for unused vacation pay.
a. Are the audit procedures performed by Alyssa sufficient to test accrued payroll tax, vacation pay, and bonuses? If not, what additional procedures should she perform?
b. For each additional procedure you recommend in part a., identify the related audit objective the procedure would satisfy.