Which of the following errors gives the auditor concern in auditing payroll transactions?
A) an error that indicates possible fraud
B) computational errors in formulas when a computerized system is used
C) classification errors in charging labor to inventory and job cost accounts
D) Each of the above gives the auditor significant concern.

Question

Quizplus · Accepted Answer

All of the errors listed give the auditor significant concern in auditing payroll transactions. An error indicating possible fraud could mean that there is intentional misstatement or manipulation of payroll records. Computational errors in a computerized system can result in significant errors or inconsistencies across different records that are difficult to trace without adequate controls or testing. Classification errors can lead to inaccuracies in cost records or financial statements.

Which of the Following Errors Gives the Auditor Concern in Auditing