Question

The most important means of verifying account balances in the payroll and personnel cycle are:

1) tests of controls and substantive tests of transactions.
2) analytical procedures and tests of controls.
3) analytical procedures and substantive tests of transactions.
4) tests of controls and tests of details of balances.

Answer 1

Tests of controls and substantive tests of transactions, option 1, are the most important means of verifying account balances in the payroll and personnel cycle.

Step-by-step explanation:

The most important means of verifying account balances in the payroll and personnel cycle are tests of controls and substantive tests of transactions.

These two methods ensure that the controls in place are effective and that the transactions recorded in the payroll and personnel system are accurate and complete.

Tests of controls assess the effectiveness of internal controls, while substantive tests of transactions examine the individual transactions for accuracy and completeness.