Which of the Following Is the Best Reason Why an Auditor

question 52

Multiple Choice

Which of the following is the best reason why an auditor should consider observing an entity's distribution of regular payroll checks?

• A)To ensure that names on the company payroll are those of bona fide employees presently on the job.
• B)Total payroll costs are a significant part of total operating costs.
• C)The auditor did not observe the distribution of the entire regular payroll during the audit in the prior year.
• D)Employee turnover is excessive.

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Definitions:

Cognitive Fit

The degree to which information presentation aligns with an individual's cognitive processes, enhancing understanding and decision-making.

Parent Brand Image

The overall perception of a parent company, which can influence the recognition and reception of its subsidiary brands.

Brand Extension Authenticity

The genuine and credible expansion of a brand into new categories or markets, maintaining its core values and identity.

Sincerely Motivated

denotes a state of being genuinely driven or inspired to act or accomplish something without hidden agendas.