The auditor, in auditing payroll, wants to determine that the individuals included in her sample were employees of the company for the period under review.What is the auditor's best source of evidence?
A)Examination of human resource records
B)Examination of the payroll master file
C)Examination of the payroll transaction file
D)Examination of the payroll tax records

Question

Quizplus · Accepted Answer

The human resource records would provide the best evidence that the individuals included in the payroll sample were employees of the company for the period under review. These records would include documentation of employment status, such as job title, start date, termination date, and salary information, which could be used to verify employee status and payroll calculations. The payroll master file and transaction file would provide information about individual payroll transactions, but may not provide evidence of employee status for the entire period under review. The payroll tax records would provide information about tax payments, but may not provide evidence of employee status or payroll calculations.

The Auditor, in Auditing Payroll, Wants to Determine That the Individuals