In the Audit of Payroll, One of the Key Issuis

question 52

True/False

In the audit of payroll, one of the key issuis to ensure that the payroll expense has been properly recorded and the associated deductions for income tax, employee benefits, and related liabilitiare properly recorded as liabilities.

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Definitions:

Home Construction

The process of building residential homes, including planning, design, construction, and sale of new homes.

Prime Costs

The combination of direct materials and direct labor costs.

Direct Labor

The cost of wages for employees who are directly involved in the production of goods or services.

Direct Materials

The raw materials that are directly used in the manufacturing of a product, easily traceable to the finished product.