An Auditor Is Vouching a Sample of Hourly Employees from the Payroll

question 49

Multiple Choice

An auditor is vouching a sample of hourly employees from the payroll master file to approved time clock or time sheet data in order to provide evidence that

• A) employees work the number of hours for which they are paid.
• B) payments are made at the contractual rate.
• C) product cost information is accurate.
• D) segregation of duties is present between the payroll function and the payment function for cash disbursements.

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Definitions:

Utilitarian Justice

An ethical framework that assesses actions based on their consequences, aiming to maximize overall happiness and minimize suffering.

Dollar Worth

The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy.

After-Tax Distribution

The process of allocating income or assets to various recipients after all applicable taxes have been deducted.

Before-Tax Distribution

The allocation of income or wealth in a society before the effects of taxes are taken into account.