In the Substantive Audit Procedures for Payroll Where the Control

question 3

Multiple Choice

In the substantive audit procedures for payroll where the control risk is set at low, an auditor most likely would:

• A)verify that checks representing unclaimed wages are mailed.
• B)trace individual employee deductions to entity journal entries.
• C)observe entity employees during a payroll distribution.
• D)compare payroll costs with entity standards or budgets.

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Definitions:

Strategic Business Decision

A choice made by a company's leadership that is intended to guide the organization towards its long-term goals and success.

Diversity

Every trait and encounter that shapes our unique identity as individuals.

Smart Business Leaders

Individuals at the helm of enterprises who are noted for their intelligence, strategic thinking, and ability to innovate and adapt.

Communication

The exchange of information or news between two or more individuals, through verbal, written, non-verbal, or digital means.