An Auditor Is Verifying That the Recorded Payroll Payments Are

question 112

Essay

An auditor is verifying that the recorded payroll payments are for work actually performed by existing employees, the occurrence transaction-related audit objective.List three key internal controls that a company should have in place in this area.

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Definitions:

Legally Sufficient Value

Refers to the consideration in a contract that is recognized by law as adequate to support a legal obligation or agreement.

Preexisting Duty

An obligation that one party is already legally required to perform and cannot be used as consideration for a new contract.

Consideration

In contract law, consideration refers to something of value exchanged between parties as part of an agreement.

Preexisting Duty

A duty that already exists under contract law, which cannot be used as consideration for a new promise or contract.