Which of the Following Is the Best Way for an Auditor

question 32

Multiple Choice

Which of the following is the best way for an auditor to determine that every name on a company's payroll is that of a bona fide employee presently on the job?

• A)Examine personnel records for accuracy and completeness.
• B)Examine employees' names listed on payroll accounting records.
• C)Make a surprise observation of the company's regular distribution of paychecks.
• D)Visit the working areas and confirm with employees their badge or identification numbers.

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Definitions:

Sample Mean

The average of all the data points in a sample, used as an estimate of the population mean.

Square Root

The square root of a number is a value that, when multiplied by itself, gives the original number.

P < 0.05

A statistical threshold indicating that the observed results are significant with a probability of less than 5% being due to chance.

Obtained Value

The actual value measured or computed from a data set or experiment, often compared against a theoretic or critical value in hypothesis testing.