In Determining the Effectiveness of an Entity's Policies and Procedures

question 110

Multiple Choice

In determining the effectiveness of an entity's policies and procedures relating to the occurrence assertion for payroll transactions, auditors most likely would inquire about and

• A)observe the separation of duties concerning personnel responsibilities and payroll disbursement.
• B)inspect evidence of accounting for prenumbered payroll checks.
• C)recompute the payroll deductions for employee fringe benefits.
• D)verify the preparation of the monthly payroll account bank reconciliation.

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Definitions:

Total Quality Management

A comprehensive approach to long-term success through customer satisfaction, focusing on continuous improvement in all organizational processes.

Just-in-Time Manufacturing

Just-in-Time Manufacturing is a production model that aims to reduce in-process inventory and associated carrying costs by producing goods only as they are needed.

Customer Deliveries

The process or action of delivering goods to customers, often involving logistics, scheduling, and ensuring the right products reach customers in a timely manner.

Lean Business Model

A strategy focused on creating value for the end customer with the least possible waste, emphasizing efficiency and the elimination of non-value-added activities.