Inherent Risk for the Valuation or Allocation Assertion Will Be

question 50

Multiple Choice

Inherent risk for the valuation or allocation assertion will be high in the personnel services cycle when:

• A) employee turnover is low.
• B) factory workers are paid based on production.
• C) payroll checks are drawn from a separate imprest bank account.
• D) pay periods are weekly.
• E) employee absenteeism is minimal.