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Using the financial assertions below, discuss how each would be applicable to payroll:

Payroll is a very common area that is always audited in financial statement audits because it poses some level of risk. Moreover, the auditor needs to make sure that payroll transactions are reflected correctly in the financial statements and in the correct period.  

 

Using the financial assertions below, discuss how each would be applicable to payroll:

  • Occurrence 
  • Completeness 
  • Authorization 
  • Accuracy  
  • Cutoff

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