To Test the Transaction Assertion of Occurrence in the Area

question 24

Multiple Choice

To test the transaction assertion of occurrence in the area of payroll,the auditor most likely would

• A)Select a sample of personnel files and trace the pay rate to union contracts or other rate rights and obligations.
• B)Select a sample of personnel files and trace the pay rate to payroll department files used in payroll preparation.
• C)Select a sample of payroll register entries and recalculate gross pay,deductions,and net pay.
• D)Select a sample of payroll register entries and vouch hours worked to clock time cards.

---

Definitions:

Fraudulent Misrepresentation

A false statement of fact made by one party to another with the intent to deceive, which leads to a material injury.

Not Legally Bound

A term referring to agreements or promises that lack legal enforceability or are not recognized as contracts by law.

Contract

A legal agreement between two or more parties that creates enforceable rights and obligations.

Legality

The state or quality of being in accordance with the law.