Which of the following internal control objectives is likely to be the most important in the audit of the payroll cycle?
A)Payroll transactions are properly disclosed and presented in the notes to the financial statements.
B)Payroll transactions are processed by an outside service provider.
C)Recorded transactions represent valid payments.
D)Recorded transactions are recorded in the proper accounting period.

Question

Quizplus · Accepted Answer

The objective of ensuring that recorded transactions represent valid payments is important in the audit of the payroll cycle as it helps to prevent fraudulent or erroneous payments. This objective relates to the completeness and accuracy of payroll transactions, which are essential for ensuring the reliability of financial statements. The other objectives (A, B, and D) are also important, but they are not as critical as ensuring the validity of payments.

Which of the Following Internal Control Objectives Is Likely to Be