Assessment of Payroll:

The tolerable rate of deviation for this test, as per the audit plan, is 5 per cent. Twenty-

four employee pays were selected from the weekly payroll reports (two per month) and

tests performed as per the audit plan. Two immaterial errors were found. These errors

were discussed with the client, who corrected them based on information provided by

audit staff. As the errors were immaterial (less than $50 each) and subsequently

corrected, one of the audit assistants provided the conclusion that payroll controls are

working satisfactorily and there is sufficient appropriate audit evidence to rely upon them

audit assistant's conclusion regarding the payroll control is correct or

not? Explain.