In Testing the Payroll of a Large Company, the Auditor

question 50

Multiple Choice

In testing the payroll of a large company, the auditor wants to establish that the individuals included in a sample actually were employees of the company during the period under review. What will be the best source to determine this?

• A)Telephone contacts with the employees.
• B)Tracing from the payroll register to the employee's earnings records.
• C)Confirmation with the union or other independent organization.
• D)Examination of Human Resource Department records.

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Definitions:

Attendance Plans

Policies or programs established by an organization to manage employee attendance, including tracking, incentives for good attendance, and consequences for excessive absenteeism.

Administering

The process of managing or supervising the execution, application, or conduct of something.

Legitimate Absences

Any absence from work that is sanctioned or permitted by the employer, often due to illness, family obligations, or other acceptable reasons.

Merit Raises

Merit raises are salary increases awarded to employees based on their performance achievements, distinguishing them from across-the-board increases.