The Sampling Unit in a Test of Controls Relating to the Validity

question 7

Multiple Choice

The sampling unit in a test of controls relating to the validity of payroll transactions is ordinarily a (an)

• A)Clock card or time ticket.
• B)Employee T-4 Form.
• C)Employee personnel record.
• D)Payroll register entry.

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Definitions:

Semiannual Interest

Interest that is computed and disbursed semi-annually.

Long-term Investment

Assets intended to be held for more than one year for capital growth, income generation, or other strategic purposes.

Bonds Purchased

This refers to the buying of debt securities issued by corporations or governments as a means of investment.

Accrued Interest

Interest that has been incurred but not yet paid or received, often associated with bonds and loans.