Is It Possible That an Auditor Can Make a Professional

question 68

Essay

Is it possible that an auditor can make a professional judgment error and still be behaving with due professional care? Explain.

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Definitions:

FUTA Payable

A liability account reflecting the federal unemployment tax due to the government by employers.

Wages and Salaries Expense

The cost incurred by a business to compensate its employees for their work, typically noted in the income statement.

Payroll Tax Expense

Total taxes, both employer and employee portions, associated with wages and salaries, including federal, state, and other payroll taxes.

Calendar Quarter

A three-month, 13-week time period. Four calendar quarters occur during a calendar year that runs from January 1 through December 31. The first quarter is January through March, the second is April through June, the third is July through September, and the fourth is October through December.