Question

An auditor is vouching a sample of hourly employees from the payroll master file to approved time clock or time sheet data in order to provide evidence that:

1) employees work the number of hours for which they are paid.
2) payments are made at the contractual rate.
3) product cost information is accurate.
4) segregation of duties is present between the payroll function and the payment function for cash disbursements.

Answer 1

The subject of this question is Business and the grade level is College. An auditor vouches a sample of hourly employees from the payroll master file to approved time clock or time sheet data to provide evidence about employees working the correct hours, payment at the contractual rate, and segregation of duties between payroll and payment functions.

Step-by-step explanation:

The subject of this question is Business and the grade level is College.

The auditor is vouching a sample of hourly employees from the payroll master file to approved time clock or time sheet data in order to provide evidence that:

1. Employees work the number of hours for which they are paid. This is important to ensure that employees are not underpaid or overpaid.
2. Payments are made at the contractual rate. This ensures that employees are paid the correct amount as per their employment contracts.
3. Segregation of duties is present between the payroll function and the payment function for cash disbursements. This helps prevent fraud and ensure that payroll payments are accurately processed and disbursed.