An Auditor Vouched Data for a Sample of Employees in a Payroll

question 17

Multiple Choice

An auditor vouched data for a sample of employees in a payroll register to approved clock card/time sheet data to provide assurance that:

• A)payments to employees are computed at authorized rates.
• B)employees worked the number of hours for which they are paid.
• C)segregation of duties exists between the preparation and distribution of the payroll.
• D)internal controls relating to unclaimed payroll checks are operating effectively.

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Definitions:

Stock Appreciation Rights

A type of incentive given to employees or executives that entitles them to receive benefits equivalent to the appreciation of the company's stock over a specified period.

Compensation Expense

Compensation expense is the total amount of salary, wages, bonuses, and benefits that a company recognizes for its employees' services during a period.

Options Pricing Model

A mathematical model used to determine the theoretical price of options contracts, taking into account factors like the stock price, strike price, volatility, and time to expiration.

Compensation Expense

The total cost that a company recognizes for paying its employees, including wages, benefits, and bonuses.