Question

Accounting Records: Audit trail for employees includes the following documents?

1) Payroll records
2) Time sheets
3) Purchase orders
4) All of the above

Answer 1

An audit trail for employees comprises documents such as payroll records, time sheets, and purchase orders, which are essential for verifying financial transactions and compliance. The correct answer is 4) All of the above.

Step-by-step explanation:

The audit trail for employees includes various documents that record and document financial transactions and operations within a company to ensure accuracy and compliance with financial regulations. Among the documents that make up an audit trail, the following are included:

• Payroll records: These documents provide detailed information about the payments made to employees for their services, including wages, salaries, bonuses, and deductions.
• Time sheets: Employees' time sheets are crucial for tracking the hours worked and ensuring that employees are paid correctly for their time, especially for those on hourly wages.
• Purchase orders: While purchase orders are often associated with the procurement process, they can also be part of an employee's audit trail if that employee has the authority to requisition goods or services for the company.

Therefore, the correct answer to the question about what documents the audit trail for employees includes is:

4) All of the above