Final answer:
An auditor using around-the-computer auditing for payroll applications would use test data and confirm that the output matches the input, but would not typically create data profiles. The number of audits in a 20-year period and probabilities of being audited depend on the company's policies and cannot be determined without specific data.
Step-by-step explanation:
If an auditor were to audit a payroll application using around-the-computer auditing techniques, the individual would likely engage in practices such as using test data, verifying that the output from the computerized processing was correct for the input data used to generate it, and could potentially use a surprise audit despite the effort involved. However, preparing a profile of a computer file and checking the processed data against this profile is not typically described as around-the-computer auditing, as it involves analyzing the data post-processing rather than testing the processing itself.
Audits of payroll applications are essential for ensuring accuracy and preventing fraud. They can be expected periodically, determined by the organization's internal control policies, and their frequency can significantly vary from one organization to another. To answer parts d, e, and f, specific probabilities would need to be known, which are not provided in this context. Generally, the number of expected audits in a 20-year period will depend on the audit schedule set by the organization or regulatory requirements.
A person's likelihood of being not audited at all or being audited more than twice will fluctuate based on various factors, including the audit frequency, the person's role, and the organization's size and complexity. Without specific probability data, exact probabilities cannot be determined.