Mathews and Company Has $112,000 in an Accrued Payroll Account

question 18

Essay

Mathews and Company has $112,000 in an accrued payroll account.The company's weekly payroll is $186,700 and the accrual represents 3 days out o 5 working days.If the auditor has determined that controls are effective over payroll, what additional work should the auditor perform for this account?

Understand the differentiation between preference and screening decisions in capital budgeting.

Understand the fundamental concepts and significance of Big Data in modern computing environments.

Identify and describe the basic units of data processing and data hierarchy.

Recognize the key components and structures of database systems including primary and foreign keys.

---

Definitions:

Fire Loss

Financial damage or asset destruction resulting from a fire, often requiring assessment for insurance and recovery purposes.

Prior Period Adjustment

Corrections made to a company's financial statements for errors or omissions found in previously reported periods.

Treasury Stock Transactions

Activities involving the buyback or resale of a company's own stock, affecting the equity section of a company's balance sheet but not its issued stock number.