Which of the Following Is the Best Reason Why the Auditors

question 46

Multiple Choice

Which of the following is the best reason why the auditors should consider observing a client's distribution of regular payroll checks?

• A)Separation of payroll duties is less than adequate for effective internal control.
• B)Total payroll costs are a significant part of total operating costs.
• C)The auditors did not observe the distribution of the entire regular payroll during the audit in the prior year.
• D)Employee turnover is excessive.

---

Definitions:

Installments

Payments divided into multiple, usually regular, parts over a set period of time.

Core Proceeding

A legal term referring to matters fundamental to a bankruptcy case, such as the eligibility for bankruptcy and the determination of discharged debts.

Bankruptcy Judge

A specialized judge who presides over bankruptcy cases.

Discharge

The release from legal obligation, such as the completion of a debt payment or the fulfillment of contractual duties.