A Common Audit Procedure in the Audit of Payroll Transactions

question 71

Multiple Choice

A common audit procedure in the audit of payroll transactions involves tracing selected items from the payroll journal to employee time cards that have been approved by supervisory personnel.This procedure is designed to provide evidence in support of the audit proposition that:

• A)Only bonafide employees worked and their pay was properly computed.
• B)Jobs on which employees worked were charged with the appropriate labor cost.
• C)Internal control relating to payroll disbursements are operating effectively.
• D)Employees worked the number of hours for which their pay was computed.

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Definitions:

Littoral Zone

The shallow nearshore area of a body of water, where sunlight can reach the bottom, supporting diverse aquatic plants and animals.

Limnetic Zone

The open surface waters in a freshwater habitat, away from the shore, where there is enough light penetration to support photosynthesis.

Profundal Zone

The deep zone of a body of water, below the range of effective light penetration, where photosynthesis cannot occur.

Hydrothermal Vents

Openings in the seafloor that emit hot, mineral-rich water, supporting unique ecosystems.