An Auditor Is Verifying That the Recorded Payroll Payments Are

question 112

Essay

An auditor is verifying that the recorded payroll payments are for work actually performed by existing employees, the occurrence transaction-related audit objective.List three key internal controls that a company should have in place in this area.

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Definitions:

Rate of Return

The profit or deficit experienced from an investment during a set timeframe, represented as a percent growth from the initial investment value.

Capital Budgeting

The process of planning and managing a firm's long-term investments in projects and assets, considering their potential returns and risks.

Long-Term Commitment

Refers to obligations or investments that a company plans to hold or is expected to fulfill over an extended period, typically beyond one year.

Large Amounts

This term commonly refers to substantial or significant quantities, often in the context of transactions, investments, or financial operations.