What is the auditor's main concern when examining payroll transactions?
A) posting of gross payroll amounts to incorrect salary expense accounts
B) excess withholding of amounts required to be withheld
C) misfootings of employee time records
D) overpayments and unauthorised payments

Question

Quizplus · Accepted Answer

The auditor's main concern when examining payroll transactions is overpayments and unauthorised payments. It is important to ensure that employees are being paid in accordance with their employment agreements and that payroll records are accurate and free from errors. Overpayments and unauthorised payments can result in significant financial loss for the company and can also be a sign of fraud or other wrongdoing. Therefore, it is important for the auditor to focus on identifying and addressing any such issues in the payroll records.

What Is the Auditor's Main Concern When Examining Payroll Transactions