Which of the following audit procedures is aimed at determining whether every name on the company payroll is an employee actually on the job?
A) A surprise observation of a paycheck distribution.
B) A test of payroll extensions.
C) Analytical comparisons of budgeted to actual payroll expense.
D) Comparison of payee names on canceled payroll checks with the payroll register.

Question

Quizplus · Accepted Answer

A surprise observation of a paycheck distribution helps verify that the individuals receiving paychecks are actual employees who are present and working, thus ensuring the legitimacy of the payroll list.

Which of the Following Audit Procedures Is Aimed at Determining