Which One of the Following Circumstances Would NOT Cause an Auditor

question 76

Multiple Choice

Which one of the following circumstances would NOT cause an auditor to extend payroll procedures considerably?

• A) There is a possibility of material fraudulent payroll transactions.
• B) There is a lack of independent third- party evidence, such as confirmations.
• C) Payroll significantly affects inventory valuation.
• D) There is a deficient internal control structure.

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Definitions:

Mental Activity

The operation of the mind through processes like thinking, learning, memory, perception, and problem-solving.

Goods

Tangible items that are produced, bought, or sold, serving as objects of commerce and economic transactions.

Services

Activities or functions that are provided by individuals or organizations to fulfill the needs or wants of others.

Offshoring

Sending work or jobs to another country to cut a company’s costs at home (sometimes called international outsourcing and offshore outsourcing).