When auditing the payroll and personnel cycle, the auditor should keep in mind that
◦ since payroll transactions are typically uniform, all companies have the same internal controls over payroll.
◦ the substantive tests of transactions for the payroll cycle are the same for all audit clients.
◦ controls the auditor intends to rely on to reduce assessed control risk must be tested with tests of controls.
◦ the tests of controls and the substantive tests of transactions for payroll cannot be combined.