Which of the following internal control objectives is likely to be a larger concern in the audit of the payroll cycle?
A)Payroll transactions are properly disclosed.
B)Recorded payroll transactions are valid.
C)Payroll transactions are recorded in the appropriate time period.
D)All payroll transactions have been recorded.

Question

Quizplus · Accepted Answer

Ensuring that recorded payroll transactions are valid is a larger concern in the audit of the payroll cycle. This is because payroll is a significant expense for most companies, and there is a higher risk of errors or fraud occurring in payroll transactions. Therefore, auditors should focus on verifying the accuracy and validity of payroll transactions to ensure that the company is properly paying its employees and complying with relevant laws and regulations. While the other internal control objectives are also important, they may not be as significant a concern as the validity of payroll transactions.

Which of the Following Internal Control Objectives Is Likely to Be