Auditors Should Be Aware That a Voucher System May Result

question 41

Multiple Choice

Auditors should be aware that a voucher system may result in which of the following at year-end:

• A)Understatement of liabilities.
• B)Overstatement of assets.
• C)Understatement of owners' equity.
• D)Overstatement of expenses.

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Definitions:

Job Evaluation

The process of determining the relative value and importance of jobs within an organization to establish fair compensation levels.

Base Pay

The initial rate of compensation an employee receives, not including overtime, bonuses, or other additional payments.

Output

The amount of product or work produced by a company, employee, or process within a specific period.

Performance

The level of output or efficiency at which tasks and activities are accomplished, often measured against predetermined standards or objectives.