In auditing payroll withholding and payroll tax expense, explainwhy emphasis should normally be on evaluating the adequacy of the payroll tax returnpreparation procedures rather than the payroll tax liability. If the preparation proceduresare inadequate, explain the effect this will have on the remainder of the audit.

Q: Management of COV Limited has decided not to disclose auditor remuneration for tax services provided…

A: Audit shall express an opinion in audit report on the basis of auditing and after obtaining…

Q: Ed Caluag, CPA was engaged to audit the financial statement of KMJS, Company, a continuing audit…

A: Firstly select the payroll register for a specific period, and check the details: Test the…

Q: What documents are included in the audit trail for payroll?

A: Payroll System:   Payroll system is a system within an organization that manages the payment of…

Q: Items 1 through 8 are selected questions typically found ininternal control questionnaires used by…

A: We will answer only first two sub-parts of this question as it is not mentioned which sub-part is to…

Q: below presents the payroll procedures of XYZ Limited. We discussed various aspects of such payroll…

A: Payroll In a simple word payroll means the compensation which are provided by the companies to its…

Q: Determine the following as a result of your audit: 3. How much is the amount of liability for income…

A: Here to discuss about the details of the trade payable and other payable which are related with this…

Q: The following are typical questions that might appear on an internal control questionnaire for…

A: The key Internal control activities are as follows:- Segregation of duties Authorization and…

Q: How would you go about detecting and preventing Payroll and Expense Reimbursement Schemes ?

A: Prevention of Payroll and Expenses Reimbursement Scheme There are many ways the frauds which are…

Q: Which of the following activities most likely would be considered a weakness in an entity’s internal…

A: Answer:   Option c

Q: The following are typical questions that might appear on an internal control questionnaire for…

A: The key Internal control activities are as follows:- Segregation of duties Authorization and…

Q: In determining the effectiveness of an entity’s policies and procedures relating to the occurrence…

A: Management Assertion: Management assertion refers to the claim made by management assuring about…

Q: The main portion of an independent auditor’s work in expressing an opinion on financial statements…

A: Introduction:- The main goal of an audit is examines the accuracy of recorded business…

Q: List the supporting documents and records the auditorwill examine in a typical payroll audit in…

A: Audit: Audit is the process of verification of the compliance of the financial statements.

Q: Evaluate the difficulties associated with preventing and detecting payroll fraud.

A: Payroll is the compensation that a firm must pay to its employees on a given day and for a specific…

Q: sses and exampl

A: Here are some of the common risks to be aware of and  payroll processes can help in them: Overtime…

Q: In a payroll journal entry, a credit to Federal Withholding Tax Payable indicates a.Federal taxes…

A: Solution: In payroll journal entry, Payroll expense are debited, amount paid to employee is credited…

Q: Arthur Young & Co., a firm of certified public accountants, was the independent auditor for…

A: The legal liability of the accountants is to execution specialized duties where accountants is…

Q: In verifying accounts payable, it is common to restrict the auditsample to a small portion of the…

A: Auditing:- It is a system in which data or transactions get verified, inspect, or examine for…

Q: CPAs understand – far better than most clients do, in fact – that the IRS real-ly audits very few…

A: Standards for tax services are the standards that describe the responsibilities that CPA’s have…

Q: Advise the college on the weakness in its systems and procedures due to payroll fraud.

A: List of some actions to be taken by college on the weakness in its systems and procedures due to…

Q: are a member of external audit team for Hadi International Limited. Payroll was assigned to you for…

A: Audit Procedure: A specific procedure undertaken by an auditor to procure evidence in a particular…

Q: As an auditor, you are tasked to audit the income tax liability of Taxpayer Corp. which of the…

A: Permanent differences is difference between the tax expenses and tax payable due to an item that…

Q: not that its tax positio

A: The correct option is given as,

Q: What is NOT an example of internal control procedures that help prevent payroll fraud? a.Outsource…

A: Internal control is a technique used by internal management to analyse the efficiency and…

Q: As part of a normal payroll audit, the auditor will review a variety of supporting papers and…

A: Term definition: Audit: The process of auditing financial accounts is to ensure that they are…

Q: Powers of the Commissioner on Internal Revenue 1. To interpret tax laws and decide tax cases; 2. To…

A: Answer:-  Tax meaning:- A tax is basically a mandatory financial charge or other sort of levy that…

Q: If a client uses ADP, a service center, for processing payroll, None of these. auditing standards…

A: ADP is automatic data processing facility for payroll processing. This type of processing is done by…

Q: Under what responsibility would investigating tax fraud be? tax accounting, Financial Accounting, or…

A: Tax fraud is a type of deception by misrepresenting or suppressing taxable income to evade or reduce…

Q: S1: When control risk is assessed as low for assertions related to payroll, substantive tests of…

A: The question is related to Auditing. Control risk is  the effectiveness of the design,…

Q: What special accounts must usually be opened in the general ledger to record payroll tax entries?…

A: Lets understand the basics. Journal entry is required to make to record financial event or…

Q: Aside from professional audits of income tax returns, who does the separate non-tax audit program…

A: Auditing is defined as the process of evaluation of the formal financial documents presented by the…

Q: When control risk is assessed as low for assertions related to payroll, substantive tests of payroll…

A: Solution Concept Control risk It is a risk that the company’s internal control will not be able to…

Q: Describe TWO (2) audit procedures to be performed in the audit of payroll transactions in addressing…

A: AUDIT:- Audit is an examination of books of accounts of the enterprise by the auditor.. An auditor…

Q: Complete the following statements regarding the types of audit conducted by the IRS. Taxpayers…

A: The purpose of any audit is to detect the fraud, misrepresentation and risk involved…

Q: With the intention of limiting contact by taxpayers when dealing with the BIR and at the same time…

A: Taxable income is the amount of income computed to measure the amount of taxes to be paid to the…

Q: Describe the nature of the evidence the internal revenue agentwill use in the audit of Jones…

A:

Q: Needles talks about the use of a continuum ranging from questionable or highly conservative to fraud…

A: Definition: Earnings: The bottom line of an income statement which is the result of excess earnings…

Q: Which of the following financial statements would be improperly prepared as part of the annual 10K…

A: Annual reports are those reports which are and have to be prepared by the company in order to comply…

Q: I. Review the adequacy of the withholding procedures. II. Determine the last remittance of…

A: Withholding taxes are those deducted from the earnings of employees and subsequently, these taxes…

Q: During the audit conducted by the BIR official, it was found that the rental income claimed by the…

A: Introduction:- Discussion of During the audit conducted by the BIR official it was found that the…

Q: Figure below presents the payroll procedures of AAA Limited. We discussed various aspects of such…

A: 1.Time card Fraud : If employees falsly mentioned their time in their time sheet and get paid for…

Q: The following powers are classified as primary powers of the Commissioner of the BIR. Which of these…

A: The Bureau of internal revenue is considered to be an agency of department of finance. The Bureau of…

Q: an auditor, you are tasked to audit the income tax liability of Evader Corp. which of the following…

A: the deferred tax is such tax that is payable in the future. entity pay there income tax on the…