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:

Cost Of Goods Sold

The amount of money a firm spent to buy or produce the products it sold during the period to which the income statement applies.