The auditor, in auditing payroll, wants to determine that the individuals included in her sample were employees of the company for the period under review. What is the auditor's best source of evidence?
A) Examination of Human Resource Records
B) Examination of the Payroll Master File
C) Examination of the Payroll Transaction File
D) Examination of the Payroll Tax Records

Question

Quizplus · Accepted Answer

The Human Resource Records would contain information about each employee's start date, job title, and other relevant employment information that would allow the auditor to confirm that each individual included in the payroll sample was truly an employee of the company during the period being audited. The Payroll Master File, Payroll Transaction File, and Payroll Tax Records might also provide some information about the individuals included in the sample, but they would not necessarily confirm whether each individual was truly an employee of the company.

The Auditor, in Auditing Payroll, Wants to Determine That the Individuals