The Overall Audit Objective in the Audit of the Payroll

question 116

True/False

The overall audit objective in the audit of the payroll and the personnel cycle is to evaluate whether the account balances affected by the cycle are fairly stated according to the applicable accounting standards.

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Definitions:

Market-Equilibrium

A condition where market supply equals market demand, resulting in stable prices where the amount produced matches consumer demand.

Fire Extinguishers

Portable devices used to put out fires by discharging a jet of water, foam, gas, or other materials.

Private Cost

Private cost is the cost incurred by an individual or company in producing goods or services, excluding externalities.

External Benefit

A positive effect of a transaction or activity on a third party who did not choose to incur that benefit.