Substantive test of details on payroll transactions means the details checking of records of employees, attendance, rate of wages and compare the wage records daily. Substantive test of details on payroll transactions is required when internal control is weak. To choose: The situation when auditor is likely to apply a substantive test of details on payroll transactions.

Question

Want to see the full answer?

Answer 1

Question

Chapter 12, Problem 12.23MCQ

To determine

Concept Introduction:

Substantive test of details on payroll transactions means the details checking of records of employees, attendance, rate of wages and compare the wage records daily. Substantive test of details on payroll transactions is required when internal control is weak.

To choose: The situation when auditor is likely to apply a substantive test of details on payroll transactions.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

9. Calculating Payments [LO3] The Bandon Pine Corporation's purchases from suppliers in a quarter are equal to 75 percent of the next quarter's forecast sales. The payables period is 60 days. Wages, taxes, and other expenses are 20 percent of sales, and interest and dividends are $110 per quarter. No capital expenditures are planned. Projected quarterly sales are shown here: Sales Q1 $2,250 Q2 $2,730 Sales for the first quarter of the following year are projected at $2,475. Calculate the company's cash outlays by completing the following: Payment of accounts Wages, taxes, other expenses Long-term financing expenses (interest and dividends) Total Q3 $2,390 Q4 $2,190 Q1 Q2 Q3 Q4

The average daily net transaction accounts of a local bank during the most recent reserve computation period is $341 million. The amount of average daily reserves at the Fed during the reserve maintenance period is $26.20 million, and the average daily vault cash corresponding to the maintenance period is $5.8 million. (Example13-2). a. Under the rules effective in 2020, what is the average daily reserve balance required to be held by the bank during the maintenance period? b. Is the bank in compliance with the reserve requirements?

What are the LSS and characteristics of LSS tools used in a research study? What is Lean Six Sigma and what is the possible benefits of using Lean Six Sigma? What are the seven LSS tools, could you please explain the characteristics of each tool, and state how the tool would be used to in a case study? How Lean Six Sigma brings a hint of all three traditional types of research (qualitative, quantitative, and mixed methods) to bear on Case Study research and business solutions?