Which of the Following Is the Best Reason Why an Auditor

question 52

Multiple Choice

Which of the following is the best reason why an auditor should consider observing an entity's distribution of regular payroll checks?

• A)To ensure that names on the company payroll are those of bona fide employees presently on the job.
• B)Total payroll costs are a significant part of total operating costs.
• C)The auditor did not observe the distribution of the entire regular payroll during the audit in the prior year.
• D)Employee turnover is excessive.