Which of the following could test the occurrence assertion for payroll-related liabilities?
A) Compare items in accrued payroll taxes to the supporting payroll tax return.
B) Search for unrecorded liabilities.
C) Examine payroll tax returns to determine that the expense was recorded in the proper period.
D) Review payroll liabilities for proper classification as short- or long-term.

Question

Quizplus · Accepted Answer

The occurrence assertion for payroll-related liabilities is that all recorded payroll liabilities actually exist and pertain to the company. To test this assertion, we can compare the items in accrued payroll taxes to the supporting payroll tax return to ensure that the accrued payroll taxes are accurate and valid liabilities. Option A is the best choice as it directly relates to the occurrence assertion for payroll-related liabilities. Option B is related to the completeness assertion, option C is related to the timing assertion, and option D is related to the classification assertion, which are not directly related to the occurrence assertion.

Which of the Following Could Test the Occurrence Assertion for Payroll-Related