If an Auditor Wishes to Test the Completeness Transaction-Related Audit

question 13

Multiple Choice

If an auditor wishes to test the completeness transaction-related audit objective in the payroll and personnel cycle, which of the following would be a reasonable test of control?

• A) Account for a sequence of payroll checks.
• B) Examine the procedures manual and observe the recording of transactions.
• C) Examine the payroll records for indication of pay rate approval.
• D) Reconcile the payroll bank account.

---

Definitions:

Production Costs

The total expense of manufacturing a product, including raw materials, labor, and overhead costs.

Prestige Pricing

Setting a high price so that quality- or status-conscious consumers will be attracted to the product and buy it.

Quality

The level at which a product or service achieves or outdoes the expectations of customers.

Status-conscious Consumers

Consumers who make purchasing decisions based on the perceived status or prestige associated with a product or brand.