the question

You are an audit senior working on the Noball Limited (Noball) financial statements audit for the year ended 30 September 20X0. Consistent with the previous year, the audit team plans to take a controls-based audit approach over payroll expenses. You are currently planning to perform substantive analytical procedures (SAP) over payroll expenses and consider the following information based on the audit work performed to date: Payroll expenses SAP Result The financial and non-financial data items are: Step 1: Identify the financial and non-financial Number of employees. data items Average salary per employee. Changes to salaries. Bonuses. Testing of controls showed a number of Step 2: Evaluate the reliability of the data exceptions. Payroll controls are not operating effectively Which one of the following is the most appropriate response? A. Perform a SAP as per the planned audit strategy by relying on the financial and non-financial data items. Adjust the inputs to the SAP planned to test payroll expenses, to respond to the control deficiencies identified. Perform the SAP using the adjusted inputs. O C. Refer to the prior-year audit file to calculate this year's expected payroll expenses. D. Perform tests of details over payroll expenses