To test the transaction assertion of occurrence in the area of payroll,the auditor most likely would
A)Select a sample of personnel files and trace the pay rate to union contracts or other rate rights and obligations.
B)Select a sample of personnel files and trace the pay rate to payroll department files used in payroll preparation.
C)Select a sample of payroll register entries and recalculate gross pay,deductions,and net pay.
D)Select a sample of payroll register entries and vouch hours worked to clock time cards.

Question

Quizplus · Accepted Answer

To test the occurrence assertion, the auditor needs to verify that recorded payroll transactions actually occurred. Vouching hours worked to clock time cards helps confirm that employees worked the hours for which they were paid.

To Test the Transaction Assertion of Occurrence in the Area