Which of the Following Errors Gives the Auditor Concern in Auditing

question 8

Multiple Choice

Which of the following errors gives the auditor concern in auditing payroll transactions?

• A) an error that indicates possible fraud
• B) computational errors in formulas when a computerized system is used
• C) classification errors in charging labor to inventory and job cost accounts
• D) Each of the above gives the auditor significant concern.

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Definitions:

CD-50

A classification of heavy-duty gear oil, with "CD-50" indicating the oil's viscosity and performance characteristics according to specific standards.

Pinion Bearing Preload

The amount of force applied to pinion bearings, controlling how tightly they fit, influencing gear meshing and noise.

Thicker Spacer

A broader component used to create distance or fill gaps between objects in various applications.

Thinner Spacer

A slim component used to create or adjust the space between two parts, often in machinery, to ensure proper clearance or alignment.