When auditing the human resources and payroll cycle,the auditor should verify the officers' compensation because
A)officers are more likely to commit fraud.
B)officers' compensation is likely more prone to error.
C)some officers may have complex compensation packages.
D)some officers may be in a position to pay themselves more than the authorized amounts.

Question

Quizplus · Accepted Answer

The auditor should verify officers' compensation because some officers may be in a position to pay themselves more than the authorized amounts. This is a potential fraud risk and could result in material misstatements in the financial statements. Additionally, officers may have complex compensation packages that require thorough testing to ensure accuracy.

When Auditing the Human Resources and Payroll Cycle,the Auditor Should