You are assigned as the lead auditor in auditing the payroll cycle with SOCAL Bank, a small local credit union. You schedule a entrance meeting with the payroll manager who is most knowledgeable about processing payroll. She tells you she's the only person in charge of recruitment, pay entry, timekeeping and disbursements of checks. She also tells you that they have never had an error in their pay check and that she also got an IRS audit of her payroll and it was clean.

As the lead auditor what are some some risk with this client ? Are there controls missing or ok ? What audit procedures would you perform?