In Testing for the Transaction-Related Audit Objective of Occurrence, an Auditor

question 119

Essay

In testing for the transaction-related audit objective of occurrence, an auditor is verifying that the recorded payroll payments are for work actually performed by existing employees. List three key internal controls that a company should have in place in this area.

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Definitions:

Interposition

A visual cue in depth perception where objects that block the view of other objects are perceived as being closer.

Environmental Depth Cue

Visual or other sensory cues in one's environment that provide information about distance and three-dimensional space.

Bipolar Cells

A type of neuron found in the retina that acts as a middle layer transmitting signals from photoreceptors to ganglion cells.

Ganglion Cells

Neurons located in the retina of the eye, responsible for transmitting visual information to the brain.