CPA · Question 54 · Area 3: Performing Procedures
An auditor is testing the completeness of the payroll expense. Which of the following analytical procedures would be most effective?
Answer options:
Comparing the total payroll expense to the budget and prior year, adjusted for changes in the number of employees and pay rates.
Vouching a sample of payroll checks to time cards.
Tracing a sample of employees from the personnel file to the payroll register.
Observing the distribution of paychecks.
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