Payroll expenses take major part of the company’s earnings and hence these are one the major expenses for an organization. There are chances of misstatements in payroll accounting due to high human involvement. The auditor plans separately for the audit of payroll transactions. To choose: The purpose of segregation of duties of hiring personnel and distributing payroll checks.

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Chapter 12, Problem 12.18MCQ

To determine

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Payroll expenses take major part of the company’s earnings and hence these are one the major expenses for an organization. There are chances of misstatements in payroll accounting due to high human involvement. The auditor plans separately for the audit of payroll transactions.

To choose: The purpose of segregation of duties of hiring personnel and distributing payroll checks.

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