Which of the Following Internal Control Tests Would Help to Assess

question 62

Multiple Choice

Which of the following internal control tests would help to assess whether payroll transactions were properly classified?

• A)Test clerical accuracy by footing the payroll journal.
• B)Recompute net pay and gross pay.
• C)Reconcile the disbursements in the payroll journal with the payroll bank statement.
• D)Review time records and job records,tracing to labour distribution.

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Definitions:

Chief Executive Officer

The highest-ranking executive in a company, responsible for making major corporate decisions, managing overall operations, and resources.

Financial Statements

Financial statements are formal records of the financial activities and position of a business, person, or entity, providing an overview of a financial situation over a specific period.

Physical Existence

The actual, tangible presence of an asset, as opposed to intangible assets or rights.

External Audit

An independent examination of financial records and statements, conducted by an outside firm, to ensure accuracy and compliance with accounting standards.