In Determining the Effectiveness of an Entity's Policies and Procedures

question 42

Multiple Choice

In determining the effectiveness of an entity's policies and procedures relating to the existence or occurrence assertion for payroll transactions, an auditor most likely would inquire about and:

• A)observe the segregation of duties concerning human resource responsibilities and payroll disbursement.
• B)inspect evidence that all prenumbered payroll checks are accounted for.
• C)recompute the payroll deductions for employee fringe benefits.
• D)verify the preparation of the monthly payroll account bank reconciliation.

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Definitions:

External Validity

The extent to which the results of a study can be generalized to other situations and to other people outside of the experimental setting.

Internal Validity

The extent to which a study can demonstrate that a causal relationship exists between two variables, free from the influence of extraneous variables.

Single-Case Experimental Designs

Research methods that focus on obtaining detailed information from individual participants to assess the impacts of interventions.

Interventions

Actions or processes of intervening, designed to improve health or alter the course of a disease, typically referring to treatments, therapies, or programs.