In the Audit of Payroll,auditors Often Examine the Endorsements on a Sample

question 30

Essay

In the audit of payroll,auditors often examine the endorsements on a sample of cancelled payroll cheques.What is the purpose of this procedure?

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Definitions:

Statute of Frauds

A legal concept that requires certain types of contracts to be in writing and signed by the parties involved to be legally enforceable.

Oral Agreement

An agreement made through spoken communication between parties, which can be legally binding even in the absence of a written document in some cases.

Partial Payment

A payment that covers only a portion of the total amount due on a debt, bill, or other financial obligation.

Statute of Frauds

A legal principle requiring certain types of contracts, such as those concerning real estate or lasting more than a year, to be in writing to be enforceable.