In witnessing a payroll distribution, the auditor would not be expected to observe that
A) the segregation of duties exist between the preparation and payment of payroll.
B) the correct payroll entries are made in the firm's ledger and journal
C) there is proper control and disposal of unclaimed cheques.
D) each employee receives only one cheque or pay envelope.

Question

Quizplus · Accepted Answer

While the auditor may review the firm's ledger and journal for accuracy, they would not actually observe the entries being made during payroll distribution. The other options listed are things the auditor would be expected to observe or ensure are being carried out properly.

In Witnessing a Payroll Distribution, the Auditor Would Not Be