How do auditors commonly verify sales commission expense?

How do auditors commonly verify sales commission expense?

Answer:

If all employees receive the same commission rate, then verifying the expense is done by multiplying the commission rate by the amount of the sales. If there are different commission rates, then the auditor will likely select a sample of employees to examine separately on a monthly or annual basis.

Comments

Popular posts from this blog

Examine the collapse of Han. What factors explain how this occurred? How influential in Han Dynasty on Chinese History?

JAD Advantages and Disadvantages

Summarize effective communication strategies in organizational hierarchies, and review the role and relevance of the organizational grapevine