For each of the following tests, identify the assertion to which the test applies.
1)Trace a sample of payroll checks to the master employee list.
2)Recalculate a sample of payroll checks.
3)Review supporting documentation to determine that the entity is legally obligated to pay the liability.
4)Estimate sales commissions by applying commission formulas to recorded sales totals.
5)Compare amounts accrued to supporting documentation, such as payroll tax returns.
6)Compare payroll costs as a percentage of sales to industry data.

Question

Quizplus · Accepted Answer

The Answer of For each of the following tests, identify the assertion to which the test applies.
1)Trace a sample of payroll checks to the master employee list.
2)Recalculate a sample of payroll checks.
3)Review supporting documentation to determine that the entity is legally obligated to pay the liability.
4)Estimate sales commissions by applying commission formulas to recorded sales totals.
5)Compare amounts accrued to supporting documentation, such as payroll tax returns.
6)Compare payroll costs as a percentage of sales to industry data.

For Each of the Following Tests, Identify the Assertion to Which