When reading the corporate minutes,the auditor extracted the approved annual salary for the President,the Chief Executive Officer,and other senior executives.What audit step would the auditor likely conduct with this information?
A)trace the payroll amount to each individual officer's payroll record
B)check that the payroll has been recorded into the correct bank account
C)verify that payroll cheques have two signatures for all large amounts
D)ensure that all overtime is approved and adequately documented

Question

Quizplus · Accepted Answer

The auditor would likely trace the approved annual salary to each individual officer's payroll record to ensure that the appropriate amount was paid to each officer and to verify that the payroll is accurate. Option B is incorrect because it pertains to verifying the bank transaction, which is not relevant in this scenario. Option C pertains to internal controls relating to cheque signing, which is not relevant to tracing payroll amounts. Option D pertains to verifying the documentation of overtime, which is not relevant to tracing approved annual salaries.

When Reading the Corporate Minutes,the Auditor Extracted the Approved Annual