Once the Auditor Has Determined the Company's Policy for Accruing

question 6

Multiple Choice

Once the auditor has determined the company's policy for accruing wages and knows it is consistent with that of previous years,the appropriate audit procedure to test for cutoff and accuracy is to

• A)recalculate the client's accruals.
• B)compare the ledger balance with the journal and the T4 form.
• C)confirm the amount with employees.
• D)compare the recorded accrued wages with the amount approved in the minutes of the Board.

---

Definitions:

Ownership

The act, state, or right of possessing something, which can refer to tangible property or intangible qualities such as owning one's actions.

Being

The existence or essence of a person, often considered in terms of consciousness, identity, and the nature of existence.

Ultimate Concern

A term describing something that is of utmost importance or the deepest value to an individual, often referring to existential or philosophical concerns.

Distress

Extreme anxiety, sorrow, or pain; a negative stress response that can lead to physical and psychological problems.