An Auditor Who Is Testing IT Controls in a Payroll

question 11

Multiple Choice

An auditor who is testing IT controls in a payroll system would most likely use test data that contain conditions such as:

• A)payroll cheques with unauthorised signatures.
• B)time cards with invalid job numbers.
• C)overtime not approved by supervisors.
• D)deductions not authorised by employees.

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Definitions:

Value Analyses

A method of assessing the functions of a product or service to reduce costs and improve product value for consumers.

Selling Price

The amount of money charged for a product or service, determined by factors such as cost, market demand, and competition.

Retail Cost

The total price at which a product is sold to the end consumer, including costs of production, distribution, and a profit margin.

Markup on Selling Price

The amount added to the cost price of goods to cover overhead and profit, calculated as a percentage of the selling price.