Which of the following procedures would normally be performed by the auditor when conducting tests of payroll transactions?
A) Interview employees selected in a statistical sample of payroll transactions.
B) Vouch number of hours worked as shown on payroll to time sheets and time reports signed by the foreman.
C) Confirm amounts withheld from employees' salaries with proper governmental authorities.
D) Examine signatures on paid salary checks.

Question

Quizplus · Accepted Answer

The auditor would normally perform vouching of the number of hours worked as shown on payroll to time sheets and time reports signed by the foreman as a test of payroll transactions. This helps to ensure that payments to employees are properly authorized and supported by relevant documentation. A is incorrect because interviewing employees is not a standard procedure for testing payroll transactions. C and D may be relevant procedures for other aspects of payroll auditing, but are not typically performed as tests of payroll transactions.

Which of the Following Procedures Would Normally Be Performed by the Auditor