The sampling unit in a test of controls pertaining to the existence of payroll transactions ordinarily is a (an):

Question

Quizplus · Accepted Answer

Choice "D" is correct. To test controls pertaining to the existence of payroll transactions, entries in the payroll register would be the population from which the sample is selected. (To test existence, the auditor needs to start with the accounting records and vouch backward to the source documents.) Choice "A" is incorrect. After the sample is taken from the payroll register, the selected samples are traced to clock cards or time tickets to verify that payroll transactions really exist/occurred. Choices "B" and "C" are incorrect. Sampling employee form W-2s and employee personnel records would test controls related to the completeness of recorded payroll, not existence of specific transactions.

The Sampling Unit in a Test of Controls Pertaining to the Existence