Which One of the Following Would NOT Justify an Auditor's

question 132

Multiple Choice

Which one of the following would NOT justify an auditor's decision to spend very little time performing tests of transactions in the payroll and personnel cycle?

• A) The new payroll bookkeeper has a much better educational background than the former one.
• B) Payroll transactions are uniform and uncomplicated.
• C) Employees will detect any underpayments.
• D) Payroll transactions are extensively audited by government agencies.

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Definitions:

Fluctuate Wildly

To vary or change rapidly and unpredictably, often used in financial contexts to describe asset prices or market movements.

Inefficient

Describing a process or system that wastes resources or does not achieve its goals effectively.

Spring Brake Chambers

Components in a vehicle's braking system that use spring power for parking brakes and air pressure for service brakes, providing safety and redundancy.

Cage the Mainspring

A process in mechanical watchmaking that involves restraining the mainspring to prevent it from releasing its energy too quickly.