In Testing the Payroll of a Large Company,the Auditor Wants

question 45

Multiple Choice

In testing the payroll of a large company,the auditor wants to establish that the individuals included in a sample actually were employees of the company during the period under review.What will be the best source to determine this?

• A) Telephone contacts with the employees.
• B) Tracing from the payroll register to the employee's earnings records.
• C) Confirmation with the union or other independent organization.
• D) Examination of Human Resource Department records.
• AICPA: BB Industry
• AICPA: FN Decision Making
• Accessibility: Keyboard Navigation

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Definitions:

Code Of Ethics

A set of principles designed to help professionals conduct their business with honesty, integrity, and fairness.

Company's Culture

The shared values, beliefs, and behaviors that characterize the social and psychological environment of a business organization.

Management

The process of planning, organizing, directing, and controlling resources to achieve specific goals.

Focus Strategies

Business approaches that target a specific market niche or demographic with tailored products or services.