When Reading the Corporate Minutes,the Auditor Extracted the Approved Annual

question 68

Multiple Choice

When reading the corporate minutes,the auditor extracted the approved annual salary for the President,the Chief Executive Officer,and other senior executives.What audit step would the auditor likely conduct with this information?

• A)trace the payroll amount to each individual officer's payroll record
• B)check that the payroll has been recorded into the correct bank account
• C)verify that payroll cheques have two signatures for all large amounts
• D)ensure that all overtime is approved and adequately documented

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Definitions:

Safe Harbor

Safe harbor refers to a legal provision to reduce or eliminate liability in certain situations, provided that the actions taken meet specified criteria.

Civil Liability

The legal responsibility of one party to another for damages or losses caused, typically resolved through the payment of compensatory damages or other remedies.

Civil Liability

Legal responsibility requiring a person to compensate for harm or damage they've caused to another entity.

Unregistered Securities

Securities that have not been registered with the Securities and Exchange Commission (SEC) and thus cannot be legally sold in the public securities markets.