In Determining the Effectiveness of an Entity's Internal Controls Relating

question 1015

Multiple Choice

In determining the effectiveness of an entity's internal controls relating to the occurrence assertion for payroll transactions, an auditor most likely would inquire about and:

• A) Observe the segregation 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:

Cell Division

A fundamental biological process where a parent cell divides into two or more daughter cells, essential for growth and reproduction.

Blood Cell Formation

The process of creating new blood cells, also known as hematopoiesis, occurring mainly in the bone marrow.

Yolk Sac

One of the extraembryonic membranes that, in shelled vertebrates, contains yolk for the nourishment of the embryo, and in placental mammals is the first site for blood cell formation.

HCG

Human Chorionic Gonadotropin, a hormone produced during pregnancy by the placenta that supports the fetal egg after conception.