Question 1

Discuss the two most common ways in which employees can defraud a company in the payroll area.

Accepted Answer

The two most common ways in which employ

Question 2

Which of the following internal control tests would help to assess whether payroll transactions were properly classified?

Accepted Answer

A) Test clerical accuracy by footing the payroll journal. 
B) Recompute net pay and gross pay. 
C) Reconcile the disbursements in the payroll journal with the payroll bank statement. 
D) Review time records and job records,tracing to labour distribution. 
A) Test clerical accuracy by footing the payroll journal. 
B) Recompute net pay and gross pay. 
C) Reconcile the disbursements in the payroll journal with the payroll bank statement. 
D) Review time records and job records,tracing to labour distribution.

Question 3

State the six specific transactions-related audit objectives as related to payroll,and for each objective,state one common test of controls that can be used to test the objective.

Accepted Answer

The six transactions-related audit objec

Question 4

Otto decided to outsource the payroll function to Magna Plus.The controller of Otto should still

Accepted Answer

A) recalculate the payroll and its remittance to ensure accuracy. 
B) review and authorize each individual payment to employees. 
C) review the payroll journal and compare the total hours worked with the payroll time records. 
D) inquire with the manager of Magna Plus if they suspect any unusual transactions. 
A) recalculate the payroll and its remittance to ensure accuracy. 
B) review and authorize each individual payment to employees. 
C) review the payroll journal and compare the total hours worked with the payroll time records. 
D) inquire with the manager of Magna Plus if they suspect any unusual transactions.

Question 5

Which of the following controls prevents error and helps to ensure that only authorized wages are paid by the payroll service provider?

Accepted Answer

A) duplicate signatures required on payments to the Receiver General 
B) use of an imprest payroll account for the payment of all payroll payments 
C) independent approval of the payroll journal prior to payroll payment release 
D) reconciliation of the payroll imprest bank account on a timely basis 
A) duplicate signatures required on payments to the Receiver General 
B) use of an imprest payroll account for the payment of all payroll payments 
C) independent approval of the payroll journal prior to payroll payment release 
D) reconciliation of the payroll imprest bank account on a timely basis

Question 6

Which of the following internal control tests would help to assess whether payroll transactions were recorded on the correct dates?

Accepted Answer

A) Compare cancelled cheques with payroll journal for name,amount,and date. 
B) Compare date on cheque with date the cheque cleared the bank. 
C) Compare cancelled cheques with personnel records. 
D) Recompute hours worked from pay records. 
A) Compare cancelled cheques with payroll journal for name,amount,and date. 
B) Compare date on cheque with date the cheque cleared the bank. 
C) Compare cancelled cheques with personnel records. 
D) Recompute hours worked from pay records.

Question 7

Which of the following is a substantive test of transactions?

Accepted Answer

A) Review personnel policies. 
B) Account for a sequence of payroll cheques. 
C) Reconcile the disbursements in the payroll journal with the disbursements on the payroll bank statement. 
D) Examine printouts of transactions rejected by the computer as having invalid employee numbers. 
A) Review personnel policies. 
B) Account for a sequence of payroll cheques. 
C) Reconcile the disbursements in the payroll journal with the disbursements on the payroll bank statement. 
D) Examine printouts of transactions rejected by the computer as having invalid employee numbers.

Question 8

Which of the following internal control tests would be used in assessing that recorded payroll transactions are for the amount of time actually worked and at the proper pay rate,and that withholdings are properly calculated?

Accepted Answer

A) Foot the payroll journal and trace to the general ledger. 
B) Prove the bank reconciliation. 
C) Recompute gross pay. 
D) Review the payroll journal for large or unusual amounts. 
A) Foot the payroll journal and trace to the general ledger. 
B) Prove the bank reconciliation. 
C) Recompute gross pay. 
D) Review the payroll journal for large or unusual amounts.

Question 9

"Existing payroll transactions are recorded" is the control objective of

Accepted Answer

A) authorization. 
B) completeness. 
C) existence. 
D) accuracy. 
A) authorization. 
B) completeness. 
C) existence. 
D) accuracy.

Question 10

Which of the following procedures carried out by the personnel department best reduces the risk of payroll fraud and represents an appropriate responsibility for the department?

Accepted Answer

A) authorizing overtime hours 
B) authorizing the addition or removal of employees from the payroll 
C) distributing paycheques 
D) collecting and retaining unpaid paycheques 
A) authorizing overtime hours 
B) authorizing the addition or removal of employees from the payroll 
C) distributing paycheques 
D) collecting and retaining unpaid paycheques

Question 11

Payroll and personnel costs at ABC Manufacturing are a major expense.This means that improper allocation or misclassification of labour costs could result in

Accepted Answer

A) a material misstatement of net income. 
B) a net effect that is negligible when costing inventory. 
C) quality control problems with respect to the production of finished products. 
D) incorrect payment of payroll to employees. 
A) a material misstatement of net income. 
B) a net effect that is negligible when costing inventory. 
C) quality control problems with respect to the production of finished products. 
D) incorrect payment of payroll to employees.

Question 12

A wage rate form that also documents a change in job responsibility for one of the warehouse employees should be approved by

Accepted Answer

A) human resources and the corporate controller. 
B) the warehouse supervisor and human resources. 
C) the warehouse supervisor. 
D) human resources. 
A) human resources and the corporate controller. 
B) the warehouse supervisor and human resources. 
C) the warehouse supervisor. 
D) human resources.

Question 13

Which of the following controls will help to detect unauthorized changes to payroll master files and help to detect whether terminated employees are still being paid?

Accepted Answer

A) use of authorized change forms 
B) periodic review of master files 
C) use of master files to print T4s 
D) use of master files to print payroll cheques 
A) use of authorized change forms 
B) periodic review of master files 
C) use of master files to print T4s 
D) use of master files to print payroll cheques

Question 14

To minimize the opportunity for fraud,unclaimed salary cheques should be

Accepted Answer

A) immediately returned for redeposit. 
B) kept in the payroll department. 
C) left with the employee's supervisor. 
D) held for the employee in the personnel department. 
A) immediately returned for redeposit. 
B) kept in the payroll department. 
C) left with the employee's supervisor. 
D) held for the employee in the personnel department.

Discuss the two most common ways in which employees can defraud a company in the payroll area.

Which of the following internal control tests would help to assess whether payroll transactions were properly classified?

State the six specific transactions-related audit objectives as related to payroll,and for each objective,state one common test of controls that can be used to test the objective.

Otto decided to outsource the payroll function to Magna Plus.The controller of Otto should still

Which of the following controls prevents error and helps to ensure that only authorized wages are paid by the payroll service provider?

Which of the following internal control tests would help to assess whether payroll transactions were recorded on the correct dates?

Which of the following is a substantive test of transactions?

Which of the following internal control tests would be used in assessing that recorded payroll transactions are for the amount of time actually worked and at the proper pay rate,and that withholdings are properly calculated?

"Existing payroll transactions are recorded" is the control objective of

Which of the following procedures carried out by the personnel department best reduces the risk of payroll fraud and represents an appropriate responsibility for the department?

Payroll and personnel costs at ABC Manufacturing are a major expense.This means that improper allocation or misclassification of labour costs could result in

A wage rate form that also documents a change in job responsibility for one of the warehouse employees should be approved by

Which of the following controls will help to detect unauthorized changes to payroll master files and help to detect whether terminated employees are still being paid?

To minimize the opportunity for fraud,unclaimed salary cheques should be

The Demand for Audit and Other Assurance Services

The Public Accounting Profession and Audit Quality

Professional Ethics and Legal Liability

Audit Responsibilities and Objectives

Audit Evidence

Client Acceptance,Planning,and Materiality

Assessing the Risk of Material Misstatement

Internal Control and COSO Framework

Assessing Control Risk and Designing Test of Controls

Develop Risk Response: Audit Strategy and Audit Program

Audit Sampling Concepts

Audit of the Revenue Cycle

Audit of the Acquisition and Payment Cycle

Audit of the Inventory and Distribution Cycle

Audit of the Capital Acquisition and Repayment Cycle

Audit of Cash Balances

Completing the Audit

Audit Reports on Financial Statements

Other Assurance and Nonassurance Services

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Exam 15: Audit of the Human Resources and Payroll Cycle

Discuss the two most common ways in which employees can defraud a company in the payroll area.

Which of the following internal control tests would help to assess whether payroll transactions were properly classified?

State the six specific transactions-related audit objectives as related to payroll,and for each objective,state one common test of controls that can be used to test the objective.

Otto decided to outsource the payroll function to Magna Plus.The controller of Otto should still

Which of the following controls prevents error and helps to ensure that only authorized wages are paid by the payroll service provider?

Which of the following internal control tests would help to assess whether payroll transactions were recorded on the correct dates?

Which of the following is a substantive test of transactions?

Which of the following internal control tests would be used in assessing that recorded payroll transactions are for the amount of time actually worked and at the proper pay rate,and that withholdings are properly calculated?

"Existing payroll transactions are recorded" is the control objective of

Which of the following procedures carried out by the personnel department best reduces the risk of payroll fraud and represents an appropriate responsibility for the department?

Payroll and personnel costs at ABC Manufacturing are a major expense.This means that improper allocation or misclassification of labour costs could result in

A wage rate form that also documents a change in job responsibility for one of the warehouse employees should be approved by

Which of the following controls will help to detect unauthorized changes to payroll master files and help to detect whether terminated employees are still being paid?

To minimize the opportunity for fraud,unclaimed salary cheques should be

The Demand for Audit and Other Assurance Services

The Public Accounting Profession and Audit Quality

Professional Ethics and Legal Liability

Audit Responsibilities and Objectives

Audit Evidence

Client Acceptance,Planning,and Materiality

Assessing the Risk of Material Misstatement

Internal Control and COSO Framework

Assessing Control Risk and Designing Test of Controls

Develop Risk Response: Audit Strategy and Audit Program

Audit Sampling Concepts

Audit of the Revenue Cycle

Audit of the Acquisition and Payment Cycle

Audit of the Inventory and Distribution Cycle

Audit of the Capital Acquisition and Repayment Cycle

Audit of Cash Balances

Completing the Audit

Audit Reports on Financial Statements

Other Assurance and Nonassurance Services

Filters