What Is the Auditor's Main Concern When Examining Payroll Transactions

question 9

Multiple Choice

What is the auditor's main concern when examining payroll transactions?

• A) posting of gross payroll amounts to incorrect salary expense accounts
• B) excess withholding of amounts required to be withheld
• C) misfootings of employee time records
• D) overpayments and unauthorised payments

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Definitions:

Economic Actors

Individuals, households, businesses, and governments that make decisions about the allocation of resources and consumption of goods and services in an economy.

Systematic Mistakes

Errors that occur consistently as a result of a flawed system, process, or mechanism.

Statistical Probability

The likelihood of an event occurring, based on the analysis of numerical data.

Overconfident

A psychological condition where an individual's belief in their own abilities, decisions, or forecasts exceeds the objective accuracy of those beliefs, often leading to risk-taking behaviors.