In Witnessing a Payroll Distribution, the Auditor Would Not Be

question 40

Multiple Choice

In witnessing a payroll distribution, the auditor would not be expected to observe that

• A) the segregation of duties exist between the preparation and payment of payroll.
• B) the correct payroll entries are made in the firm's ledger and journal
• C) there is proper control and disposal of unclaimed cheques.
• D) each employee receives only one cheque or pay envelope.

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Definitions:

Lack Of Response

A situation where there is an absence of reaction or reply to a stimulus, action, or communication.

UCC

A broad spectrum of legislation that directs commercial activities in the United States is encapsulated in the Uniform Commercial Code.

Seller/Lessor

A party in a transaction that provides goods or property to a buyer or lessee under the terms of a contract.

Buyer/Lessee

An individual or entity that purchases or leases goods or property from another party under agreed-upon terms.