Final answer:
The appropriate audit procedure for testing the accuracy and cutoff of wage accruals, after ensuring consistency with prior years, is recalculating the client's accrual. This direct method validates the company's calculations through independent verification by the auditor.
Step-by-step explanation:
The appropriate audit procedure to test for accuracy and cutoff once it is determined that the company's policy for accruing wages is consistent with prior years is recalculating the client's accrual. This means the auditor will independently compute the accruals based on available information to verify the accuracy of the company's calculations.
Performing extensive tests of controls would normally be done when there is concern over the effectiveness of the company's internal controls. If there are indications that control failures might have occurred, these tests would be more extensive. Tests of details are substantive procedures aimed at gathering evidence on the details of balances and transactions. However, they may not be as effective as direct recalculation in verifying the accuracy of wage accruals. Therefore, out of the options provided, recalculating the client's accrual is the most suitable approach for testing the accuracy and cutoff of wage accruals.