Explain the reason for its being common to verify officer’s total compensation even after the excellent ‘test of controls’ and ‘substantive test of transaction’.

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Chapter 20, Problem 15RQ

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Explain the reason for its being common to verify officer’s total compensation even after the excellent ‘test of controls’ and ‘substantive test of transaction’.

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What audit procedures can be used to verify officers’ compensation?

If a client uses ADP, a service center, for processing payroll, None of these. auditing standards require the auditor to test ADP’s controls since the service center application involves processing significant financial data. the auditor can assume that the controls are adequate because it is an independent enterprise. and the user auditor decides to rely on ADP’s auditor's report, the user auditor must make reference to the report of the service auditor in the opinion on the user organization's financial statements.

The following are typical questions that might appear on an internal control questionnaire for payroll activities: 1. Is there adequate separation of duties between employees who maintain human resources records and employees who approve payroll disbursements? 2. Is there adequate separation of duties between personnel who maintain timekeeping or attendance records for employees and employees who distribute payroll checks? Assuming that the operating effectiveness of each of the above controls is found to be inadequate, describe how the auditors might alter their substantive procedures to compensate for the increased level of control risk.

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Question

Chapter 20, Problem 15RQ

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Explain the reason for its being common to verify officer’s total compensation even after the excellent ‘test of controls’ and ‘substantive test of transaction’.

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Chapter 20, Problem 15RQ

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Explain the reason for its being common to verify officer’s total compensation even after the excellent ‘test of controls’ and ‘substantive test of transaction’.

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Answer 4

Question

Chapter 20, Problem 15RQ

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Explain the reason for its being common to verify officer’s total compensation even after the excellent ‘test of controls’ and ‘substantive test of transaction’.

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Answer 5

Chapter 20, Problem 15RQ

To determine

Explain the reason for its being common to verify officer’s total compensation even after the excellent ‘test of controls’ and ‘substantive test of transaction’.

Answer 6

Chapter 20, Problem 15RQ

To determine

Explain the reason for its being common to verify officer’s total compensation even after the excellent ‘test of controls’ and ‘substantive test of transaction’.

Answer 7

Chapter 20, Problem 15RQ

To determine

Explain the reason for its being common to verify officer’s total compensation even after the excellent ‘test of controls’ and ‘substantive test of transaction’.

Answer 8

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Answer 9

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Answer 11

Ch. 20 - Prob. 1RQ Ch. 20 - Prob. 2RQ Ch. 20 - Distinguish among a payroll master file, a W-2...Ch. 20 - Prob. 4RQ Ch. 20 - Prob. 5RQ Ch. 20 - Prob. 6RQ Ch. 20 - Prob. 7RQ Ch. 20 - Prob. 8RQ Ch. 20 - Prob. 9RQ Ch. 20 - Prob. 10RQ

Explain the reason for its being common to verify officer’s total compensation even after the excellent ‘test of controls’ and ‘substantive test of transaction’.

Solution Summary: The author explains why it is common to verify officer's total compensation even after the excellent ‘test of controls’ and ‘substantive test of transaction’.

Explain the reason for its being common to verify officer’s total compensation even after the excellent ‘test of controls’ and ‘substantive test of transaction’.

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Chapter 20 Solutions