The auditor knows that overstatements of payroll may result from unintentional errors or fraud through payments to fictitious employees, payments to actual employefor hours not worked, and payments to actual employeat higher than authorized rates.

Question

Quizplus · Accepted Answer

The statement accurately describes the potential sources of payroll overstatements that an auditor should consider. These could be caused by unintentional errors, such as mistakes in calculating hours worked or pay rates, or by fraudulent activities such as creating fictitious employees or paying actual employees for hours not worked or at rates higher than authorized.

The Auditor Knows That Overstatements of Payroll May Result from Unintentional