Final answer:
Payroll and employee benefits would require the least amount of audit time in a medium-sized manufacturing company.
Step-by-step explanation:
In the continuing audit of a medium-sized manufacturing company, the area that would typically require the least amount of audit time is Payroll and employee benefits (Option 3). This is because payroll systems are usually highly automated with systematic internal controls, such as time tracking and direct deposits, making the audit process more straightforward and efficient compared to other areas. Option 1, Sales and revenue recognition, often involves complex revenue recognition rules and risks associated with cut-off issues and overstatement of revenue. Inventory valuation and controls (Option 2) can be complicated due to the need to assess the valuation of raw materials, work in progress, and finished goods, along with potential obsolescence. Property, plant, and equipment (Option 4) usually involve assessments of depreciation, disposals, and impairment tests which can be time-consuming. Therefore, payroll and employee benefits would generally involve the least complex audit procedures among the options provided.