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Hi mam,
”– Agree the year-end income tax payable accrual to the payroll records to confirm accuracy.”
We’re testing accuracy here since, that’s a key assertion and the fact we’re given a whole lot scenario about this accrual makes it super obvious that the accrual exists, which’s why it is kind of irrelevant to test existence with this procedure?
I think that this is existence, obligations, accuracy and valuation – you are looking at a liability recorded in the financial statements/general ledger and tracing it back to the entity’s payroll records.
Just because the answer doesn’t specify existence doesn’t mean it’s irrelevant – the answer is illustrative and alternative appropriate answer points would get credit also.
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