A common audit procedure in the audit of payroll transactions involves tracing selected items from the payroll journal to employee time cards that have been approved by supervisory personnel.This procedure is designed to provide evidence in support of the audit proposition that:
A)Only bonafide employees worked and their pay was properly computed.
B)Jobs on which employees worked were charged with the appropriate labor cost.
C)Internal control relating to payroll disbursements are operating effectively.
D)Employees worked the number of hours for which their pay was computed.

Question

Quizplus · Accepted Answer

Tracing items from the payroll journal to approved employee time cards helps verify that the hours worked, as recorded in the payroll journal, match the hours approved on the time cards, thus supporting the accuracy of the hours for which employees were paid.

A Common Audit Procedure in the Audit of Payroll Transactions