The auditor's primary concern in testing payroll liabilities is to make sure that
A)expense has not been overstated,thus reducing profits.
B)there are no understated or omitted accruals.
C)employees' T4 slips are accurate.
D)salaries of officers have not been misclassified as wages.

Question

Quizplus · Accepted Answer

The auditor's primary concern in testing payroll liabilities is to ensure that there are no understated or omitted accruals. This means that all payroll-related expenses and liabilities have been recorded accurately and completely. This is important for both financial reporting and compliance purposes. While the other options may also be important, they are not the primary concern when it comes to testing payroll liabilities.

The Auditor's Primary Concern in Testing Payroll Liabilities Is to Make