Which of the Following Audit Procedures Would Be the Most

question 56

Multiple Choice

Which of the following audit procedures would be the most effective in testing for nonexistent employees?

• A) Trace transactions recorded in the payroll journal to the human resources department to determine employment status.
• B) Examine cancelled checks for proper endorsement.
• C) Recalculate net pay.
• D) Reconcile the disbursements in the payroll journal with the disbursements on the payroll bank statement.

Develop the ability to critically analyze the effectiveness of organizational strategies in response to market challenges.

Gain insight into the role of marketing executives in problem identification and strategy formulation.

Understand the impact of external competition on business performance.

Enhance skills in citing illustrative examples to elucidate theoretical concepts.

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Definitions:

Cancelling Contract

The legal act of nullifying an agreement, making it legally void and releasing all parties from their obligations under that agreement.

Remedy

in law, signifies the means by which a court of law enforces a right, imposes a penalty, or makes some other court order to impose its will in respect to a particular legal failure or injury.

Seller

An individual or entity that offers goods or services for sale to buyers in exchange for money or other compensation.

Lessor

The party in a lease agreement who owns the asset or property and grants its use to another party for a specific period, under certain conditions.