In Determining the Effectiveness of an Entity's Policies and Procedures

question 128

Multiple Choice

In determining the effectiveness of an entity's policies and procedures relating to the occurrence assertion for payroll transactions,auditors most likely would inquire about and

• A)Observe the separation of duties concerning personnel responsibilities and payroll disbursement.
• B)Inspect evidence of accounting for prenumbered payroll checks.
• C)Recompute the payroll deductions for employee fringe benefits.
• D)Verify the preparation of the monthly payroll account bank reconciliation.

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Definitions:

Delegation

The act of assigning responsibility and authority to someone else while maintaining overall accountability for the outcome.

Empowers Employees

Refers to giving employees the authority, confidence, and resources to make decisions and contribute to the organization’s success.

Physical Condition

The state of someone's or something's body or physical structure, often implying a level of health or fitness.

Stressful Situations

Scenarios that cause stress or anxiety, often requiring careful handling or adaptation.