Which of the Following Is a Major Balance-Related Audit Objective

question 130

Multiple Choice

Which of the following is a major balance-related audit objective in testing payroll liabilities?

• A) Payroll tax expense is properly recorded.
• B) Transactions in the payroll and personnel cycle are recorded in the proper period.
• C) Accrual of salaries is the same as the amounts paid on the payroll tax returns.
• D) Time records are recorded by supervisors.

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Definitions:

Product Development

The complete process of bringing a new product or improving an existing one to the market, from idea conception to final production.

Customer Response Time

The duration it takes for a business to reply to a customer inquiry or request.

Customer Profitability Analysis

The process of determining the profit or loss attributed to a particular customer, identifying which relationships are most beneficial.

Product Contribution Analysis

A financial evaluation technique that assesses how individual products contribute to the overall profit of a company based on their contribution margins.