An Auditor Most Likely Would Extend Substantive Tests of Payroll

question 30

Multiple Choice

An auditor most likely would extend substantive tests of payroll when

• A) Payroll is extensively audited by the state government.
• B) Payroll expense is substantially higher than in the prior year due to company growth.
• C) Overpayments are discovered in performing tests of details.
• D) Employees complain to management about too much overtime.

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Definitions:

Targeted Buyers

Individuals or groups identified as the most likely to purchase a product or service, based on demographic, psychographic, or behavioral characteristics.

On-Time Delivery

The process of receiving goods or services at the promised or scheduled time.

After-Sale Service

Services provided to a customer after a product has been purchased, including support, maintenance, and repair services, aimed at ensuring customer satisfaction and loyalty.

Product Development

The complete process of bringing a new product or service to market, from initial concept through design, manufacturing, and launch.