A Surprise Observation by an Auditor of a Client's Regular

question 32

Multiple Choice

A surprise observation by an auditor of a client's regular distribution of paychecks is primarily designed to satisfy the auditor that

• A) All unclaimed payroll checks are properly returned to the cashier.
• B) The paymaster is not involved in the distribution of payroll checks.
• C) All employees have in their possession proper employee identification.
• D) Names on the company payroll are those of bona fide employees presently on the job.

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Definitions:

Criminal Penalties

Sanctions imposed for violations of criminal law, which may include imprisonment, fines, or other forms of punishment.

Trademark

A sign, term, or expression that has been legally recognized or adopted through usage to symbolize a corporation or merchandise.

Distinctive Shades

Unique or characteristic colors applied to products or brands to distinguish them from others in the marketplace.

Electronic Surveillance

Monitoring of behavior, activities, or information for the purpose of information gathering, often without the knowledge of the individuals being monitored.