Which of the Following Internal Control Objectives Is Likely to Be

question 77

Multiple Choice

Which of the following internal control objectives is likely to be the most important in the audit of the payroll cycle?

• A)Payroll transactions are properly disclosed and presented in the notes to the financial statements.
• B)Payroll transactions are processed by an outside service provider.
• C)Recorded transactions represent valid payments.
• D)Recorded transactions are recorded in the proper accounting period.

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Definitions:

Third Parties

Individuals or entities that are not directly involved in a contract or agreement but may be affected by its outcomes or hold certain rights or obligations related to it.

Primary Wrongdoers

Individuals or entities directly responsible for a tortious act or violation, distinguished from secondary parties who may also bear liability.

Appointed By President

Refers to individuals who are chosen and assigned roles or positions within the government by the President, often subject to confirmation by the legislature.

Securities Act

A U.S. law enacted in 1933 that requires that investors receive financial and other significant information concerning securities being offered for public sale.