When Auditing the Payroll and Personnel Cycle, the Auditor Should

question 20

Multiple Choice

When auditing the payroll and personnel cycle, the auditor should keep in mind that

• A) since payroll transactions are typically uniform, all companies have the same internal controls over payroll.
• B) the substantive tests of transactions for the payroll cycle are the same for all audit clients.
• C) controls the auditor intends to rely on to reduce assessed control risk must be tested with tests of controls.
• D) the tests of controls and the substantive tests of transactions for payroll cannot be combined.

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Definitions:

Early Adulthood

Early adulthood is a developmental stage ranging approximately from the ages of 20 to 40, marked by the pursuit of independence, career development, and for many, the establishment of a family.

Parenting Usually Ends

While the active role of raising and guiding a child may diminish as the child reaches adulthood, the relationship and a form of parenting often continue throughout life.

Spoil a Child

Overindulging or providing excessive leniency to a child, potentially leading to behavioral issues or a lack of responsibility.

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Families that are characterized by a high socioeconomic status, often associated with greater access to resources, education, and opportunities.