When examining payroll transactions,an auditor is primarily concerned with the possibility of
A) underpayments and properly authorized payments.
B) posting of gross payroll amounts to incorrect salary expense accounts.
C) misfootings of employee time records.
D) excess withholding of amounts required to be withheld.
AICPA: BB Industry
AICPA: FN Risk Analysis
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Question

Quizplus · Accepted Answer

An auditor is primarily concerned with the accuracy of financial statements, which includes ensuring that payroll expenses are recorded in the correct accounts. Misposting could lead to misstated financial statements.

When Examining Payroll Transactions,an Auditor Is Primarily Concerned with the Possibility