Which of the Following Is the Best Way for an Auditor

question 63

Multiple Choice

Which of the following is the best way for an auditor to determine that every name on a company's payroll for the Rodgers factory is that of a bona fide employee presently on the job?

• A) Examine personnel records for accuracy and completeness.
• B) Examine employees' names listed on payroll tax returns for agreement with payroll accounting records.
• C) Make a surprise observation of the company's regular distribution of paychecks.
• D) Visit the working areas and confirm with employees their badge or identification numbers.

---

Definitions:

Null Hypothesis

A statement of no effect, difference, or relationship that serves as a starting point for statistical hypothesis testing.

P Value

A statistical parameter that measures the probability of obtaining the observed results of a test, assuming that the null hypothesis is true.

Increase The Sample

An action to add more subjects or observations to the sample being studied to improve the representativeness or reduce the margin of error.

Obtained T Value

The achieved result of a t-test calculation, indicating the difference between groups measured in units of standard error.