Which of the Following Substantive Tests of Payroll Transactions Does

question 25

Multiple Choice

Which of the following substantive tests of payroll transactions does not relate to the accuracy assertion?

• A) reconciling the accrued payroll balance to the amount in the payroll ledger for the corresponding balance
• B) testing the postings of totals in the payroll ledger to the general ledger
• C) testing the extensions of wage rates times the hours worked
• D) comparing the hours paid with the record of hours worked

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Definitions:

Funds

Resources in the form of money available for transactions or investments.

Free Bus Rides

A policy or situation where public transportation buses are provided to passengers without any charge.

Deregulation

The reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry.

Regulatory Capture

A situation where regulatory agencies are dominated by the industries or interests they are charged with regulating, often leading to decision-making that benefits the industry at the expense of the public interest.