An Auditor Most Likely Would Perform Substantive Procedures on Payroll

question 99

Multiple Choice

An auditor most likely would perform substantive procedures on payroll transactions and balances when

• A)cutoff tests indicate a substantial amount of accrued payroll expense.
• B)the assessed level of control risk relative to payroll transactions is low.
• C)analytical procedures indicate unusual fluctuations in recurring payroll entries.
• D)accrued payroll expense consists primarily of unpaid commissions.

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Definitions:

XO

A genetic term referring to individuals with a single X chromosome and no second sex chromosome, typically associated with Turner syndrome.

Recessive Gene

A gene that is expressed in the phenotype only when it is on both chromosomes of a pair and not masked by a dominant gene.

Dominant Gene

A gene that expresses its phenotype over another gene (recessive gene) when both are present in a single organism.

Klinefelter's Syndrome

A genetic condition affecting males, characterized by an extra X chromosome, which can lead to physical abnormalities and fertility issues.