An Auditor Most Likely Would Extend Substantive Tests of Payroll

question 299

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 details.
• D) Employees complain to management about too much overtime.

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Definitions:

Verbal Stumbler

A person who frequently makes mistakes or hesitates in their speech, often affecting communication clarity or confidence.

Rephrase Statements

The act of expressing the same idea in different words to clarify or change its emphasis or tone.

Balanced Participation

Equal or fair involvement of all members in a process or activity.

Overly Eager

A state of being excessively enthusiastic or keen, sometimes to the point of being impatient or hasty.