Question

Examining payroll records for an indication of authorization is part of which timing transaction-related audit objective?

1) Completeness
2) Accuracy
3) Classification
4) Authorization

Answer 1

Examining payroll records for authorization falls under the Authorization audit objective, validating that transactions were approved following company policies.

Step-by-step explanation:

Examining payroll records for an indication of authorization is part of the Authorization transaction-related audit objective. When auditors evaluate authorization, they are confirming that the transaction was approved by someone with the proper authority, following the policies and procedures of the company. Authorization ensures that all transactions, including payroll, are intentional and legitimate, preventing fraud and unauthorized activities within the organization.