A surprise observation by an auditor of a client's regular distribution of paychecks is primarily designed to satisfy the auditor that
A) All unclaimed payroll checks are properly returned to the cashier.
B) The paymaster is not involved in the distribution of payroll checks.
C) All employees have in their possession proper employee identification.
D) Names on the company payroll are those of bona fide employees presently on the job.

Question

Quizplus · Accepted Answer

The surprise observation of the regular distribution of paychecks is primarily designed to satisfy the auditor that names on the company payroll are those of bona fide employees presently on the job. This is to ensure that nonexistent or improper payments are not made to individuals who do not work for the company. The other options may also be part of the auditor's responsibilities but are secondary to the main objective of verifying valid employee paychecks.

A Surprise Observation by an Auditor of a Client's Regular