An Auditor Most Likely Would Extend Substantive Tests of Payroll

question 36

Multiple Choice

An auditor most likely would extend substantive tests of payroll when

• A)payroll is extensively audited by the state government.
• B)payroll expense is substantially higher than in the prior year.
• C)overpayments are discovered in performing tests of controls.
• D)employees complain to management about too much overtime.

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Definitions:

Permanent Replace

The practice of hiring new employees to permanently take the positions of striking workers.

Federal Racketeering Laws

Laws under the Racketeer Influenced and Corrupt Organizations Act (RICO) designed to combat organized crime by allowing extended penalties for acts performed as part of a criminal organization.

Corporate Campaigns

Organized efforts, typically by unions or activist groups, aimed at applying pressure on a corporation to change its practices or to achieve specific goals.

Apply Pressure

To exert influence or force on someone or something in order to induce a change in behavior or outcomes, often used in political, social, or professional contexts.