In the Substantive Audit Procedures for Payroll Where the Control

question 22

Multiple Choice

In the substantive audit procedures for payroll where the control risk is set at low, an auditor most likely would

• A) Verify that checks representing unclaimed wages are mailed.
• B) Trace individual employee deductions to entity journal entries.
• C) Observe entity employees during a payroll distribution.
• D) Compare payroll costs with entity standards or budgets.

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Definitions:

Developmental Restructuring

Refers to changes made within an organization or system aimed at improving its effectiveness by altering its structure, processes, or interactions.

Vivid Mental Pictures

Highly detailed and clear images formed in the mind, often evoked by descriptive language or creative thinking.

Positive Imagery

The practice of using vivid and positive mental images to enhance performance, reduce stress, or improve emotional well-being.

Confidence

The feeling of self-assurance arising from an appreciation of one's own abilities or qualities.