Which of the Following Is the Best Reason Why the Auditors

Multiple Choice

Which of the following is the best reason why the auditors should consider observing a client's distribution of regular payroll checks?

A) Separation of payroll duties is less than adequate for effective internal control.
B) Total payroll costs are a significant part of total operating costs.
C) The auditors did not observe the distribution of the entire regular payroll during the audit in the prior year.
D) Employee turnover is excessive.