In auditing payroll, the auditor wants to determine that the individuals included in her sample were employees of the company for the period under review. What is the auditor's best source of evidence?
A) examination of human resource records
B) examination of the payroll master file
C) examination of the payroll transaction file
D) examination of the payroll tax records

Question

Quizplus · Accepted Answer

The human resource records would contain information on employee status (e.g. date of hire, termination, etc.) and would help ensure that the individuals included in the sample were actually employees during the period under review. The other choices may provide evidence regarding the accuracy and completeness of payroll transactions but do not directly address the issue of employee status.

In Auditing Payroll, the Auditor Wants to Determine That the Individuals