An auditor traces a sample of electronic time cards before and after the bi-weekly payroll report and then traces to the payroll master file to determine that payroll transactions are reported in the correct period is gathering evidence for which audit objective?

Question

Quizplus · Accepted Answer

The auditor is gathering evidence to ensure that payroll transactions are accurately recorded in the correct period. This relates to the cut-off audit objective, which pertains to the correct recording of transactions in the appropriate accounting period. The auditor is tracing the time cards before and after the payroll report to ensure that all payroll transactions have been captured within the correct period. Additionally, tracing to the payroll master file confirms that all transactions have been accurately recorded within the appropriate period.

An Auditor Traces a Sample of Electronic Time Cards Before