Question 1

Which of the following is NOT a benefit of the electronic transfer of payroll funds?

Accepted Answer

A) Ensures the timely deposit of funds into employee bank accounts 
B) Eliminates the need for an independent paymaster 
C) Removes the need for bank statement reconciliations 
D) Saves time and check-cashing fees for employees 
A) Ensures the timely deposit of funds into employee bank accounts 
B) Eliminates the need for an independent paymaster 
C) Removes the need for bank statement reconciliations 
D) Saves time and check-cashing fees for employees

Question 2

This record, prepared by the cash disbursements department, provides a listing of al paychecks written, in check-number sequence, with the total supporting the amount of payroll funds to transfer to the payroll bank account.

Accepted Answer

A) Payroll Disbursements Journal 
B) Payroll Register 
C) Payroll Journal 
D) Cash Disbursements Journal 
A) Payroll Disbursements Journal 
B) Payroll Register 
C) Payroll Journal 
D) Cash Disbursements Journal

Question 3

The security of assets and documents would include all of the following, except:

Accepted Answer

A) Supervisors need to make certain that the assets are being used for their intended purpose. 
B) Designated members of management should be assigned responsibility for the disposal of any assets 
C) Maintaining adequate insurance coverage 
D) Electronic controls are needed to control access to automated records 
A) Supervisors need to make certain that the assets are being used for their intended purpose. 
B) Designated members of management should be assigned responsibility for the disposal of any assets 
C) Maintaining adequate insurance coverage 
D) Electronic controls are needed to control access to automated records

Question 4

Which of the following independent checks would be part of the internal controls for fixed assets?

Accepted Answer

A) Comparing actual fixed asset expenditures with the capital budget. 
B) Periodic counts of fixed assets should be made by someone not otherwise responsible for fixed asset related activities. 
C) Physical counts should be reconciled with the accounting records. 
D) Book value of the assets should be compared to the insurance records. 
A) Comparing actual fixed asset expenditures with the capital budget. 
B) Periodic counts of fixed assets should be made by someone not otherwise responsible for fixed asset related activities. 
C) Physical counts should be reconciled with the accounting records. 
D) Book value of the assets should be compared to the insurance records.

Question 5

Conditions that warrant the need for strong controls relating to the payroll process include all of the following EXCEPT:

Accepted Answer

A) Irregular pay schedules 
B) Complex withholding arrangements 
C) Frequent changes in pay rates 
D) Low employee turnover 
A) Irregular pay schedules 
B) Complex withholding arrangements 
C) Frequent changes in pay rates 
D) Low employee turnover

Question 6

There are many uses of electronic funds transfer related to the payroll process.Which of the following is not one of those uses?

Accepted Answer

A) Payments to the employees. 
B) Payments to the federal taxing agencies. 
C) Transfers to the payroll checking account. 
D) All of the above are uses of electronic funds transfer. 
A) Payments to the employees. 
B) Payments to the federal taxing agencies. 
C) Transfers to the payroll checking account. 
D) All of the above are uses of electronic funds transfer.

Question 7

The hiring of employees is considered to be a routine process.

Accepted Answer

A) True 
 B)False

Question 8

Most of the records found in an employee's personnel file are accounting related.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is a correct statement related to segregation of duties related to fixed assets?

Accepted Answer

A) Custody of fixed assets is to be separate from the related record keeping 
B) Custody of fixed assets need not be separate from the purchasing of fixed assets 
C) The IT function of programming need not be separated from the accounting for fixed assets. 
D) All of the above are correct statements related to the segregation of duties. 
A) Custody of fixed assets is to be separate from the related record keeping 
B) Custody of fixed assets need not be separate from the purchasing of fixed assets 
C) The IT function of programming need not be separated from the accounting for fixed assets. 
D) All of the above are correct statements related to the segregation of duties.

Question 10

The control environment related to the fixed asset processes can be enhanced through the implementation of various access controls, such as:

Accepted Answer

A) Passwords 
B) Number of employees who have access to the system 
C) Limits on the number of computer workstations where information may be entered 
D) All of the above 
A) Passwords 
B) Number of employees who have access to the system 
C) Limits on the number of computer workstations where information may be entered 
D) All of the above

Question 11

Which of the following reviews would be most likely to indicate that a company's property, plant, and equipment accounts are not understated?

Accepted Answer

A) Review of the company's repairs and maintenance expense accounts. 
B) Review of supporting documentation for recent equipment purchases. 
C) Review and recomputation of the company's depreciation expense accounts. 
D) Review of the company's miscellaneous revenue account. 
A) Review of the company's repairs and maintenance expense accounts. 
B) Review of supporting documentation for recent equipment purchases. 
C) Review and recomputation of the company's depreciation expense accounts. 
D) Review of the company's miscellaneous revenue account.

Question 12

The shortcomings of a spreadsheet-based system include all of the following, except:

Accepted Answer

A) The design of spreadsheets is very time consuming 
B) The abundance of fixed asset data 
C) It is difficult to apply varying depreciation policies within spreadsheets 
D) It is difficult to establish an audit trail with spreadsheets 
A) The design of spreadsheets is very time consuming 
B) The abundance of fixed asset data 
C) It is difficult to apply varying depreciation policies within spreadsheets 
D) It is difficult to establish an audit trail with spreadsheets

Question 13

The electronic timekeeping devices accumulated data throughout the period and automatically calculate batch totals.At this time, the data batches are not able to prepare the paychecks or the payroll register.

Accepted Answer

A) True 
 B)False

Question 14

Internal control activities within the payroll process, identified as segregation of duties, would include which of the following?

Accepted Answer

A) Payroll preparation, authorization of new hiring and pay rates, information systems, and general accounting should all be performed by different departments and / or different people. 
B) IT controls over computer records and physical controls in records storage areas. 
C) The payroll register is checked for mathematical accuracy and agreement with authorized pay rates and deductions. 
D) Supervisor approval of time sheets prior to preparation of payroll documents. 
A) Payroll preparation, authorization of new hiring and pay rates, information systems, and general accounting should all be performed by different departments and / or different people. 
B) IT controls over computer records and physical controls in records storage areas. 
C) The payroll register is checked for mathematical accuracy and agreement with authorized pay rates and deductions. 
D) Supervisor approval of time sheets prior to preparation of payroll documents.

Question 15

Payroll disbursements are to be authorized by the accounts payable department on the basis of the company's need to satisfy its obligation to its employees.

Accepted Answer

A) True 
 B)False

Question 16

The paymaster should be independent from the departmental supervision responsibilities, so that it can be determined that the paychecks are being distributed to active employees.

Accepted Answer

A) True 
 B)False

Question 17

Historically, there have been a large number of cases of fraud, theft, manipulation, and misuse of funds in the areas of payroll and fixed assets.

Accepted Answer

A) True 
 B)False

Question 18

Disposing of a fixed asset could include all of the following methods, except:

Accepted Answer

A) Throwing it away. 
B) Sending it to another department. 
C) Exchanging it for another asset. 
D) Donating it to another party. 
A) Throwing it away. 
B) Sending it to another department. 
C) Exchanging it for another asset. 
D) Donating it to another party.

Question 19

Internal control activities within the payroll process, identified as independent checks and reconciliations, would include which of the following?

Accepted Answer

A) IT controls over computer records and physical controls in records storage area. 
B) Time sheets reconciled with the payroll register. 
C) The payroll register is checked for mathematical accuracy and agreement with authorized pay rates and deductions. 
D) Supervisor approves time sheets prior to preparation of payroll documents. 
A) IT controls over computer records and physical controls in records storage area. 
B) Time sheets reconciled with the payroll register. 
C) The payroll register is checked for mathematical accuracy and agreement with authorized pay rates and deductions. 
D) Supervisor approves time sheets prior to preparation of payroll documents.

Question 20

A hiring decision normally occurs as the result of an interview or interviews and is documented on a signed letter and / or signed employment contract.

Accepted Answer

A) True 
 B)False

Which of the following is NOT a benefit of the electronic transfer of payroll funds?

This record, prepared by the cash disbursements department, provides a listing of al paychecks written, in check-number sequence, with the total supporting the amount of payroll funds to transfer to the payroll bank account.

The security of assets and documents would include all of the following, except:

Which of the following independent checks would be part of the internal controls for fixed assets?

Conditions that warrant the need for strong controls relating to the payroll process include all of the following EXCEPT:

There are many uses of electronic funds transfer related to the payroll process.Which of the following is not one of those uses?

The hiring of employees is considered to be a routine process.

Most of the records found in an employee's personnel file are accounting related.

Which of the following is a correct statement related to segregation of duties related to fixed assets?

The control environment related to the fixed asset processes can be enhanced through the implementation of various access controls, such as:

Which of the following reviews would be most likely to indicate that a company's property, plant, and equipment accounts are not understated?

The shortcomings of a spreadsheet-based system include all of the following, except:

The electronic timekeeping devices accumulated data throughout the period and automatically calculate batch totals.At this time, the data batches are not able to prepare the paychecks or the payroll register.

Internal control activities within the payroll process, identified as segregation of duties, would include which of the following?

Payroll disbursements are to be authorized by the accounts payable department on the basis of the company's need to satisfy its obligation to its employees.

The paymaster should be independent from the departmental supervision responsibilities, so that it can be determined that the paychecks are being distributed to active employees.

Historically, there have been a large number of cases of fraud, theft, manipulation, and misuse of funds in the areas of payroll and fixed assets.

Disposing of a fixed asset could include all of the following methods, except:

Internal control activities within the payroll process, identified as independent checks and reconciliations, would include which of the following?

A hiring decision normally occurs as the result of an interview or interviews and is documented on a signed letter and / or signed employment contract.

Introduction to AIS

Foundational Concepts of the AIS

Fraud, Ethics, and Internal Control

Internal Controls and Risks in IT Systems

IT Governance

Erp Systems

Auditing Information Technology Bases Processes

Revenue and Cash Collection Processes

Expenditures Processes and Controls - Purchases

Conversion Processes and Controls

Administrative Processes and Controls

Data and Databases

Ecommerce and Ebusiness

Filters

Exam 10: Expenditures Processes and Controls Payroll and Fixed Assets

Which of the following is NOT a benefit of the electronic transfer of payroll funds?

This record, prepared by the cash disbursements department, provides a listing of al paychecks written, in check-number sequence, with the total supporting the amount of payroll funds to transfer to the payroll bank account.

The security of assets and documents would include all of the following, except:

Which of the following independent checks would be part of the internal controls for fixed assets?

Conditions that warrant the need for strong controls relating to the payroll process include all of the following EXCEPT:

There are many uses of electronic funds transfer related to the payroll process.Which of the following is not one of those uses?

The hiring of employees is considered to be a routine process.

Most of the records found in an employee's personnel file are accounting related.

Which of the following is a correct statement related to segregation of duties related to fixed assets?

The control environment related to the fixed asset processes can be enhanced through the implementation of various access controls, such as:

Which of the following reviews would be most likely to indicate that a company's property, plant, and equipment accounts are not understated?

The shortcomings of a spreadsheet-based system include all of the following, except:

The electronic timekeeping devices accumulated data throughout the period and automatically calculate batch totals.At this time, the data batches are not able to prepare the paychecks or the payroll register.

Internal control activities within the payroll process, identified as segregation of duties, would include which of the following?

Payroll disbursements are to be authorized by the accounts payable department on the basis of the company's need to satisfy its obligation to its employees.

The paymaster should be independent from the departmental supervision responsibilities, so that it can be determined that the paychecks are being distributed to active employees.

Historically, there have been a large number of cases of fraud, theft, manipulation, and misuse of funds in the areas of payroll and fixed assets.

Disposing of a fixed asset could include all of the following methods, except:

Internal control activities within the payroll process, identified as independent checks and reconciliations, would include which of the following?

A hiring decision normally occurs as the result of an interview or interviews and is documented on a signed letter and / or signed employment contract.

Introduction to AIS

Foundational Concepts of the AIS

Fraud, Ethics, and Internal Control

Internal Controls and Risks in IT Systems

IT Governance

Erp Systems

Auditing Information Technology Bases Processes

Revenue and Cash Collection Processes

Expenditures Processes and Controls - Purchases

Conversion Processes and Controls

Administrative Processes and Controls

Data and Databases

Ecommerce and Ebusiness

Filters