When performing substantive tests of the payroll process, recalculating accrued payroll tax liabilities at year-end to underlying payroll records is a test of which of the following key assertions?
A)Occurrence, accuracy, and classification
B)Occurrence, completeness, and valuation
C)Completeness, valuation, and existence

Question

Quizplus · Accepted Answer

Recalculating accrued payroll tax liabilities at year-end to underlying payroll records primarily tests the completeness, valuation, and existence assertions, ensuring that all liabilities are recorded, valued correctly, and actually exist.

When Performing Substantive Tests of the Payroll Process, Recalculating Accrued