Which of the following misstatements in the payroll cycle could be detected during the audit of payroll transactions (but would not be discovered as part of the audit of the bank reconciliation)?

Question

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Payment to fictitious employees that had been set up by the payroll supervisor is a misstatement in the payroll cycle that could be detected during the audit of payroll transactions. This is because the auditor would review the existence and accuracy of payroll records and may perform procedures to confirm the existence of employees listed in the payroll. However, this misstatement would not necessarily be discovered as part of the audit of the bank reconciliation. Choices A, B, and C are misstatements that could be detected through the bank reconciliation process.

Which of the Following Misstatements in the Payroll Cycle Could