An Auditor Most Likely Would Perform Substantive Procedures on Payroll

question 41

Multiple Choice

An auditor most likely would perform substantive procedures on payroll transactions and balances when

• A)Cutoff tests indicate a substantial amount of accrued payroll expense.
• B)The assessed level of control risk relative to payroll transactions is low.
• C)Analytical procedures indicate unusual fluctuations in recurring payroll entries.
• D)Accrued payroll expense consists primarily of unpaid commissions.

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Definitions:

Emphasis

Special importance, value, or prominence given to something.

Diversity

The inclusion of individuals from different backgrounds, cultures, ethnicities, genders, sexual orientations, and beliefs in a group or organization.

Different Backgrounds

Refers to the diverse origins, cultures, experiences, and perspectives individuals or groups bring to an environment or society.

Strength

The attribute or quality of being strong, capable, or having a high level of competence in a specific area.