When Examining Payroll Transactions, an Auditor Is Primarily Concerned with the Possibility

question 128

Multiple Choice

When examining payroll transactions, an auditor is primarily concerned with the possibility of

• A) incorrect summaries of employee time records.
• B) overpayments and unauthorized payments.
• C) under withholding of amounts required to be withheld.
• D) posting of gross payroll amounts to incorrect salary expense accounts.

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Definitions:

Confounding Variable

A variable that influences both the dependent variable and independent variable, causing a spurious association.

Dependent Variable

The variable in an experiment that is expected to change as a result of manipulations of the independent variable.

Positive Correlation

An association between increases in one variable and increases in another—or between decreases in one and in another.

Height And Weight

Physical measurements that indicate the vertical stature and mass of a body, often used in assessing health and development.