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

question 110

Multiple Choice

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

• A)observe the separation of duties concerning personnel responsibilities and payroll disbursement.
• B)inspect evidence of accounting for prenumbered payroll checks.
• 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:

Monitoring Work

The process of overseeing the performance and activities of employees to ensure efficiency, compliance, and security within an organization.

Piece-rates

A payment method where workers are paid a fixed rate for each unit of production completed, incentivizing higher productivity.

Product Quality

The characteristics of a product or service that bear on its ability to satisfy stated or implied needs; a measure of excellence.

Industrial Unions

Labor unions that represent all workers, skilled and unskilled, within an entire industry.