Tests designed to detect payroll payments made after the end of the year that have been incurred in the current year provide assurance about management's assertion of:
A)Inspection
B)Accuracy
C)Occurrence.
D)Cut-off.

Question

Quizplus · Accepted Answer

The test described is designed to detect payments that have been booked in the current year but were actually incurred in the following year. Therefore, the test provides assurance about the accuracy of cut-off, which refers to whether transactions have been recorded in the appropriate accounting period.

Tests Designed to Detect Payroll Payments Made After the End