An Auditor Most Likely Would Extend Substantive Tests of Payroll

question 45

Multiple Choice

An auditor most likely would extend substantive tests of payroll when:

• A)payroll is extensively audited by the state government.
• B)payroll expense is substantially higher than in the prior year due to company growth.
• C)overpayments are discovered in performing tests of details.
• D)employees complain to management about too much overtime.

---

Definitions:

Deci-

A metric prefix denoting a factor of one tenth.

Grain

Small, hard seeds of cereal plants like wheat and rice, consumed as food.

Abbreviation

A shortened form of a word or phrase, used typically to save space or for convenience.

Ratio

Shows the relative sizes of two or more values.