Final answer:
Tests of controls are routinely performed when auditing the payroll and personnel cycle, and this is considered true because they are crucial for assessing the effectiveness of internal controls in preventing errors or fraud.
Step-by-step explanation:
When auditing the payroll and personnel cycle, tests of controls are indeed routinely performed. This is labeled as True. Such tests are designed to assess the effectiveness of the control environment surrounding payroll and personnel transactions, verifying that the systems in place are operating as intended and preventing errors or fraud. Auditors rely on these tests to gain assurance that the internal controls are functioning effectively before relying on them and determining the extent of substantive testing that will be necessary.