When the Employees Are Paid Automatically by Bank Deposits to the Employees

question 2

Multiple Choice

When the employees are paid automatically by bank deposits to the employees' accounts,in an effort to identify potential fraud,the auditor can look for

• A)duplicated bank account numbers.
• B)duplicated names in the master payroll files.
• C)unusual employee names.
• D)cancelled cheques.

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Definitions:

Debit Side

The left-hand side of a ledger account, recording increases in assets or expenses and decreases in liabilities or equity.

Account

A record in the general ledger that is used to collect and store debit and credit transactions.

Flow Of Accounting Data

The process by which financial information moves through an organization's accounting system to be documented and reported.

Ledger

A comprehensive collection of all accounts used by an organization, recording all financial transactions through debits and credits.