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:

Structural Functionalists

Sociologists who analyze society as a system structured to maintain its stability through the interrelated functioning of its components.

1950s

A decade characterized by significant cultural, social, and political changes worldwide, marking the midpoint of the 20th century.

Critical Theory

A broad philosophical approach to culture, literature, and society that seeks to challenge and destabilize established norms and perspectives, often emphasizing power relations and social injustices.

The Frankfurt School

A group of mid-20th-century social theorists associated with the Institute for Social Research in Frankfurt, Germany, known for their critiques of capitalist society and mass culture.