Possible misstatements related to the occurrence assertion for payroll transactions include all of the following except:
A)payments to fictitious employees.
B)payments to terminated employees.
C)payments to valid employees who have not worked.
D)payments to valid employees at a rate in excess of the authorised amount.

Question

Quizplus · Accepted Answer

The occurrence assertion for payroll transactions ensures that all payments made to employees are valid and genuine. Option A, B, and C provide examples of misstatements that violate the occurrence assertion. However, option D is related to the accuracy assertion because it involves payments being made at a rate higher than the authorized amount, which does not necessarily imply that the payment was not made to a valid employee.

Possible Misstatements Related to the Occurrence Assertion for Payroll Transactions