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Which of the following could test the assertion of cutoff

Question : Which of the following could test the assertion of cutoff : 2134250

16) Which of the following could test the assertion of cutoff for payroll-related liabilities?

A) Compare items in accrued payroll taxes to the supporting payroll tax return.

B) Search for unrecorded liabilities.

C) Examine payroll tax returns to determine that the expense was recorded in the proper period.

D) Review payroll liabilities for proper classification as short- or long-term.

17) Which of the following could test the assertion of classification for payroll-related liabilities?

A) Compare items in accrued payroll taxes to the supporting payroll tax return.

B) Search for unrecorded liabilities.

C) Examine payroll tax returns to determine that the expense was recorded in the proper period.

D) Review payroll liabilities for proper reporting as short- or long-term.

18) All of the following are incorporated into valuation models for share-based compensation except:

A) the exercise price of the option.

B) the term of the option.

C) expected dividends.

D) current tax rates.

19) A surprise observation by an auditor of an entity'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.

20) Which of the following is the best reason why an auditor should consider observing an entity's distribution of regular payroll checks?

A) To ensure that names on the company payroll are those of bona fide employees presently on the job.

B) Total payroll costs are a significant part of total operating costs.

C) The auditor did not observe the distribution of the entire regular payroll during the audit in the prior year.

D) Employee turnover is excessive.

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