State the Six Specific Transactions-Related Audit Objectives as Related to Payroll

question 117

Essay

State the six specific transactions-related audit objectives as related to payroll, and, for each objective, state one common substantive test of transactions that can be used to test the objective.

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Definitions:

Accounting Records

Documents and books that capture all the financial transactions of a business or individual.

Closing Process

The procedure in accounting that involves the transfer of all income and expense account balances to the retained earnings to prepare the ledger for the next accounting period.

Real Accounts

Accounts that relate to assets, liabilities, and equity, which are not closed at the end of the accounting period and carry their balances into future periods.

Permanent Accounts

Accounts that carry their balances over into the next accounting period, such as assets, liabilities, and equity accounts.