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:

Tall

Having a greater than average height.

Egocentrism

The psychological tendency to view the world from one's own perspective while having difficulty understanding other viewpoints.

Conservation

Conservation involves the protection, preservation, management, or restoration of natural environments, wildlife, and natural resources.

Preoperational

A stage in Piaget's theory of cognitive development, typically from ages 2 to 7, where children are unable to understand concrete logic and are instead focused on manipulation of symbols and language.