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

JAD Advantages and Disadvantages

What is JAD and how are users involved? What are advantages and disadvantages of JAD?

According to Hero (1992), how are the three major theories of government compared in their ability to help explain the relative position of racial and ethnic groups in US politics? Do you agree that the theory of two-tiered pluralism is better than the other two in explaining the Latino (and other nonwhite) position in the post-1965 era?