An auditor is performing a paycheck distribution at a company location that is a three$-$hour drive from the office. The audit test is being performed to verify that employees listed on the payroll exist. It has started to snow outside, and the auditor has validated $99$ of the $100$ employees listed. The remaining employee works on the night shift. The location manager is concerned about the auditor driving in the snow and offers to validate the employee's existence over the phone and to have the employee sign the auditor's workpaper to attest to his existence. The auditor agrees to this. Did the auditor make the right decision?

No$,$ the auditor should have requested some additional evidence, such as taking a picture of the employee and emailing that.

Yes, $99$ of $100$ employees were verified, which meets the materiality threshold.

INCORRECT

Yes, the manager is a trusted and well$-$respected employee, and the auditor's decision was reasonable and prudent given the circumstances.

CORRECT

No$,$ the auditor should have returned on another day or waited for the employee to report to work.