Which of the Following Audit Procedures Would Be the Most

question 90

Multiple Choice

Which of the following audit procedures would be the most effective in testing for nonexistent employees?

• A) Trace transactions recorded in the payroll journal to the HR department to determine employment status.
• B) Examine cancelled checks for proper endorsement.
• C) Recalculate net pay .
• D) Reconcile the disbursements in the payroll journal with the disbursements on the payroll bank statements.

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Definitions:

Task Controls

Mechanisms or procedures set in place to direct, manage, and monitor the completion of tasks.

Organization Chart

A visual representation of the hierarchical structure of an organization, detailing departments, positions, and relationships.

Exercises Power

The act of utilizing control or authority to influence others or outcomes in various contexts.

Staff Units

Specialized departments or personnel that provide support, advice, and expertise to line units within an organization, rather than being directly involved in day-to-day operations.