Exam 10: Expenditures Processes and Controls Payroll and Fixed Assets

Which of the following departments or positions most likely would approve changes in pay rates and deductions from employee salaries?

The first part of the strict approval process for high-dollar fixed assets is the investment analysis.Which of the following is part of that analysis?

A company must have systems in place to take care of all activities related to both routine and non-routine processes.The activities would include all of the following, except:

A detailed listing of the company's fixed assets, divided into categories consistent with the general ledger accounts is called a:

Which of the following is not a part of "adequate documents and records" for fixed assets?

Overtime hours are paid at a rate different from the regular hours, usually one and one-half times the standard rate.

Factors that indicate the need for internal controls over fixed assets processes include all of the following, except:

Which of the following is a characteristic of a non-routine transaction?

Payroll outsourcing has become popular due to all of the following reasons EXCEPT:

The investment in fixed assets is often the largest asset reported on the income statement.

There are a number of ways that frauds may be carried out to try to receive excess compensation.Which of the following is not one of those methods?

This document authorizes the transfer of cash from the company's main operating account into the payroll cash account.

The internal control process of requiring management approval of fixed asset changes prior to recording the transaction, will help to minimize the risk of:

This phase of the fixed asset processes relates to discarding fixed assets when they become old, outdated, inefficient, or damaged.

Personnel records will typically include all of the following, except:

An alternative to batch processing is the use of electronic timekeeping devices, such as time clocks or badge readers.

Routine business transactions would include which of the following?

Types of fraud that may occur in the payroll function includes all of the following, except:

The internal control process of requiring the check of the fixed asset subsidiary ledger and depreciation schedule for mathematical accuracy and agreement with authorized documentation, will help to minimize the risk of:

Clues that a ghost employee may exist in the company would include all of the following, except: