When the Auditor Compares the Cancelled Check or Direct Deposit

question 112

Multiple Choice

When the auditor compares the cancelled check or direct deposit with the payroll journal for amount, they are concerned with the transaction-related audit objective of

• A) occurrence.
• B) accuracy.
• C) classification.
• D) timing.

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Definitions:

Material Costs

The expenses incurred for the raw materials used in the manufacturing process of a product.

Production

Production is the process of combining various material inputs and immaterial inputs (plans, know-how) in order to make something for consumption (the output).

Profitable

An economic condition where revenue exceeds the costs and expenses incurred in producing goods or services.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that producers are willing to supply.