To Test the Transaction Assertion of Occurrence in the Area

question 86

Multiple Choice

To test the transaction assertion of occurrence in the area of payroll, the auditor most likely would

• A)select a sample of personnel files and trace the pay rate to union contracts or other rate rights and obligations.
• B)select a sample of personnel files and trace the pay rate to payroll department files used in payroll preparation.
• C)select a sample of payroll register entries and recalculate gross pay, deductions, and net pay.
• D)select a sample of payroll register entries and vouch hours worked to clock time cards.

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Definitions:

Market Anomalies

Instances where financial markets deviate from the expected or normal behavior, often leading to unexpected investment opportunities.

Advertising

The activity or profession of producing advertisements for commercial products or services, aiming to influence the buying behavior of consumers.

Inform Customers

The act of providing customers with necessary or relevant information about products, services, or changes in a timely and clear manner.

Planned Purchases

Buying decisions made after careful consideration and planning, often involving budgeting and research.