of controls, substantive tests of transactions, and tests of details of balances for the payroll 19-21 (OBJECTIVES 19-3, 19-4) The following are steps in the methodology for designing tests and personnel cycle: 1. Design tests of details of balances for the payroll and personnel cycle. 2. Evaluate whether control risk can be assessed as low for payroll. 3. Design and perform payroll-and personnel-related substantive analytical procedures. 4. Identify controls and deficiencies in internal control for the payroll and personnel cycle. 5. Evaluate tests of controls and substantive tests of transactions results. 6. Design payroll and personnel cycle tests of controls and substantive tests of transactions. 7. Assess inherent risk for payroll-related accounts. 8. Evaluate risk and materiality for payroll expense and liability accounts. 9. Obtain an understanding of the payroll and personnel cycle internal controls. a. Identify (1) those steps that are tests of controls or substantive tests of transactions and (2) those that are tests of details of balances. b. Put steps that are tests of controls and substantive tests of transactions in the order of their performance in most audits. c. Put the tests of details of balances in their proper order. 19-8 (OBJECTIVE 19-3) Explain why the percentage of total audit time in the cycle devoted to performing tests of controls and substantive tests of transactions is usually far greater for the payroll and personnel cycle than for the sales and collection cycle