Possible misstatements related to the occurrence assertion for payroll transactions include all of the following except:
A) payments to fictitious employees.
B) payments to terminated employees.
C) payments to valid employees who have not worked.
D) payments to valid employees at a rate in excess of the authorized amount.
AICPA: BB Industry
AICPA: FN Decision Making
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Question

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The occurrence assertion for payroll transactions is concerned with ensuring that recorded transactions actually occurred. Payments to fictitious employees, terminated employees, or valid employees who have not worked all relate to transactions that may not have actually occurred. However, payments to valid employees at a rate in excess of the authorized amount relate to the accuracy or valuation assertion, not occurrence.

Possible Misstatements Related to the Occurrence Assertion for Payroll Transactions