Question

2. Consider the following questions that the Board of Directors for Waren Sport Supply might ask themselves about the payroll process at Waren Sport Supply and determine the assertion is most directly connected.

Have we accounted for all the payroll checks that have been written?

1. Authorization
2. Completeness
3. Occurrence

Answer 1

Authorization is the basis by which the authority to complete the various stages of a transaction is delegated. These stages include the processes of Recording, Approving and Reconciling. *Every payroll should be authorised properly

COMPLETENESS deals with whether all transactions and accounts that should be in the financial statements are included. For example, management asserts that all purchases of goods and services are included in the financial statements. *Every record should be done without any pending

Occurrence — the transactions recorded have actually taken place. Completeness — all transactions that should have been recorded have been recorded. Accuracy — the transactions were recorded at the appropriate amounts. Cutoff — the transactions have been recorded in the correct accounting period. Check wheather all the employees really present and check whether work done accordingly