The Auditor, in Auditing Payroll, Wants to Determine That the Individuals

question 35

Multiple Choice

The auditor, in auditing payroll, wants to determine that the individuals included in her sample were employees of the company for the period under review.What is the auditor's best source of evidence?

• A)Examination of human resource records
• B)Examination of the payroll master file
• C)Examination of the payroll transaction file
• D)Examination of the payroll tax records

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Definitions:

Required Reserves

are the minimum amounts of funds that banks must hold in reserve against deposits, as mandated by central banks.

Federal Funds Target Rate

The interest rate at which banks and credit unions lend reserve balances to other depository institutions overnight, guided by the Federal Reserve.

Depository Institutions Deregulation

The process of removing or easing government regulations on banks and other depository institutions to enhance efficiency and competitiveness.

Money Creation

The process by which the money supply of a country is increased through activities primarily conducted by its central bank.