The primary concern in testing payroll- related liabilities is to make sure that:
A) transactions are recorded in the proper period.
B) there are no understated or omitted accruals.
C) accruals are properly valued.
D) the accruals are not overstated.

Question

Quizplus · Accepted Answer

The primary concern in testing payroll-related liabilities is to ensure that there are no understated or omitted accruals. This is because payroll-related liabilities can have a significant impact on a company's financial statements, and any errors or omissions could result in material misstatements. Therefore, it is important to ensure that all payroll-related liabilities are properly recorded and disclosed in the financial statements. While recording transactions in the proper period, properly valuing accruals, and ensuring that accruals are not overstated are all important considerations, they are secondary to the primary concern of ensuring that there are no understated or omitted accruals.

The Primary Concern in Testing Payroll- Related Liabilities Is to Make