Question 1

Which of these is the least likely risk factor for payroll?

Accepted Answer

A)  Payments to fictitious employees. 
B)  Payments to actual employees for hours less than they worked. 
C)  Payment to actual employees for hours not worked. 
D)  Payments to actual employees at higher than authorised rates 
A)  Payments to fictitious employees. 
B)  Payments to actual employees for hours less than they worked. 
C)  Payment to actual employees for hours not worked. 
D)  Payments to actual employees at higher than authorised rates

Question 2

Which of these is not a source of potential misstatement for the function of recording a payment?

Accepted Answer

A)  a cheque may be issued for unauthorised purchases. 
B)  a cheque may not be recorded promptly. 
C)  errors may be made in recording cheques. 
D)  all of the above are sources of potential misstatement for the function of recording a payment 
A)  a cheque may be issued for unauthorised purchases. 
B)  a cheque may not be recorded promptly. 
C)  errors may be made in recording cheques. 
D)  all of the above are sources of potential misstatement for the function of recording a payment

Question 3

The batching of payroll documents is normally done in the:

Accepted Answer

A)  timekeeping department. 
B)  payroll department. 
C)  data entry department. 
D)  personnel department. 
A)  timekeeping department. 
B)  payroll department. 
C)  data entry department. 
D)  personnel department.

Question 4

Controls specific to the recording of cash payments include which of the following?

Accepted Answer

A)  an independent check by the accounting supervisor of the agreement of the amounts journalised and posted to accounts payable with the cheque summary received from the general accounts department 
B)  an independent check of the agreement of the total of cheques issued with a batch total of the vouchers processed for payment. 
C)  limits on access to blank cheques 
D)  all of the above. 
A)  an independent check by the accounting supervisor of the agreement of the amounts journalised and posted to accounts payable with the cheque summary received from the general accounts department 
B)  an independent check of the agreement of the total of cheques issued with a batch total of the vouchers processed for payment. 
C)  limits on access to blank cheques 
D)  all of the above.

Question 5

Controls over the preparation and signing of cheques include all of the following except:

Accepted Answer

A)  authorised personnel in the accounting department should be responsible for signing the cheques. 
B)  the cheque requisition and supporting documents should be cancelled (stamped) when the cheque is signed. 
C)  the signed cheque and the supporting documents should be returned to the accounts payable clerk for review and mailing. 
D)  prenumbered cheques should be used. 
A)  authorised personnel in the accounting department should be responsible for signing the cheques. 
B)  the cheque requisition and supporting documents should be cancelled (stamped) when the cheque is signed. 
C)  the signed cheque and the supporting documents should be returned to the accounts payable clerk for review and mailing. 
D)  prenumbered cheques should be used.

Question 6

A programmed routine in the edit run for payroll lists all employees who worked more than 50 hours during the week for review. This is an example of a:

Accepted Answer

A)  reasonableness test. 
B)  validity test. 
C)  sequence test. 
D)  self-checking test. 
A)  reasonableness test. 
B)  validity test. 
C)  sequence test. 
D)  self-checking test.

Which of these is the least likely risk factor for payroll?

Which of these is not a source of potential misstatement for the function of recording a payment?

The batching of payroll documents is normally done in the:

Controls specific to the recording of cash payments include which of the following?

Controls over the preparation and signing of cheques include all of the following except:

A programmed routine in the edit run for payroll lists all employees who worked more than 50 hours during the week for review. This is an example of a:

An Overview of Auditing

Governance and the Auditor

Professional Ethics, Independence and Audit Quality

Other Assurance Engagements and Quality Standards

The Auditors Legal Liability

Overview of the Audit Financial Statements

The Auditors Report

Client Evaluation and Planning the Audit

Audit Risk Assessment

Materiality and Audit Evidence

Tests of Controls

Designing Substantive Procedures

Audit Sampling

Auditing Sales and Receivables

Auditing Inventories and Property, Plant and Equipment

Auditing Cash and Investments

Completing the Audit

Filters

Exam 15: Auditing Purchases, Payables and Payroll

Which of these is the least likely risk factor for payroll?

Which of these is not a source of potential misstatement for the function of recording a payment?

The batching of payroll documents is normally done in the:

Controls specific to the recording of cash payments include which of the following?

Controls over the preparation and signing of cheques include all of the following except:

A programmed routine in the edit run for payroll lists all employees who worked more than 50 hours during the week for review. This is an example of a:

An Overview of Auditing

Governance and the Auditor

Professional Ethics, Independence and Audit Quality

Other Assurance Engagements and Quality Standards

The Auditors Legal Liability

Overview of the Audit Financial Statements

The Auditors Report

Client Evaluation and Planning the Audit

Audit Risk Assessment

Materiality and Audit Evidence

Tests of Controls

Designing Substantive Procedures

Audit Sampling

Auditing Sales and Receivables

Auditing Inventories and Property, Plant and Equipment

Auditing Cash and Investments

Completing the Audit

Filters