bona fide employee

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Which of the following is the best way for the auditors to determine that every name on a company’s payroll is that of a bona fide employee presently on the job?

a. Examine human resources records for accuracy and completeness.

b. Examine employees’ names listed on payroll tax returns for agreement with payroll accounting records.

c. Make a surprise observation of the company’s regular distribution of paychecks on a test basis.

d. Visit the working areas and verify that employees exist by examining their badge or identification numbers.

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