Which of the Following Is the Best Way for an Auditor

question 32

Multiple Choice

Which of the following is the best way for an auditor to determine that every name on a company's payroll is that of a bona fide employee presently on the job?

• A)Examine personnel records for accuracy and completeness.
• B)Examine employees' names listed on payroll accounting records.
• C)Make a surprise observation of the company's regular distribution of paychecks.
• D)Visit the working areas and confirm with employees their badge or identification numbers.

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Definitions:

Written Demand

A formal request or claim, typically documented in writing, that seeks performance or action from another party.

Lawsuit

A legal action brought before a court by an individual or group against another party.

ADR

Alternative Dispute Resolution, a range of processes such as mediation and arbitration used to resolve disputes outside of court.

Neutral Third Party

An impartial individual or entity involved in a negotiation or conflict resolution who does not favor any side involved in the dispute.