Which One of the Following Circumstances Would NOT Cause an Auditor

question 69

Multiple Choice

Which one of the following circumstances would NOT cause an auditor to extend payroll procedures considerably?

• A) Payroll significantly affects inventory valuation.
• B) There is a possibility of material fraudulent payroll transactions.
• C) There is a lack of independent third-party evidence, such as confirmations.
• D) There is a deficient internal control structure.

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Definitions:

Building

A structure with a roof and walls, such as a house or factory, constructed as a dwelling or for a business or other use.

Rawhide Tanning

The process of treating raw hides and skins with chemical solutions to produce leather.

CCA Rate

The Capital Cost Allowance rate refers to the annual depreciation rate that is applicable for tax purposes on a depreciable asset, allowing businesses to write off a portion of the asset's cost over its useful life.