6. Tests of internal control are one type of substantive audit procedure.

T F

7. Payroll expense is usually audited using tests of detail versus relying on internal controls in the payroll system.

T F

8. Payroll policies should require competent but different persons to recalculate hours worked, ensure all overtime is approved and review payroll time cards for erasures and alterations.

T F

9. Accounting for the numerical sequence of sales invoices is an example of an analytical review procedure performed by an auditor.

T F

10. Detailed tests of payroll during an audit are usually not extensive because employees will complain if underpaid, payroll transactions are standard and

not complicated, and payroll transactions are subject to audit by governments.

T F