To test the transaction assertion of occurrence in the area of payroll, the auditor most likely would
A)select a sample of personnel files and trace the pay rate to union contracts or other rate rights and obligations.
B)select a sample of personnel files and trace the pay rate to payroll department files used in payroll preparation.
C)select a sample of payroll register entries and recalculate gross pay, deductions, and net pay.
D)select a sample of payroll register entries and vouch hours worked to clock time cards.

Question

Quizplus · Accepted Answer

The assertion of occurrence in auditing refers to the assertion that a transaction actually occurred and pertains to the entity during the given period. To test this assertion in the area of payroll, an auditor would seek evidence that the hours worked, as recorded in the payroll register, actually occurred. Vouching hours worked to clock time cards directly tests whether the recorded payroll transactions occurred as claimed, making it the most relevant procedure for this assertion.

To Test the Transaction Assertion of Occurrence in the Area