Question

In case of unclaimed wages, the auditor should examine whether _________.

• A. the amount has been deposited in a separate bank account
• B. deposited with the cashier
• C. held in a safe deposit box
• D. all of these

Answer 1

Answer: (A)

the amount has been deposited in a separate bank account

Unclaimed wages is that part of wages against which the work has already been performed but wages are not claimed by the workers. It is different from the outstanding wages, which is due but not paid.

Unclaimed wages is a liability to the organization and that need to be kept in a separate bank account so that if any worker claims, the amount can be paid off immediately.

Auditor should verify the amount of unclaimed wages and ensure that amount is kept separately.