Exam 10: Expenditures Processes and Controlspayroll and Fixed Assets

This item would include explanations concerning the qualifications and responsibilities of each position shown on organization chart.The item is also supported by policies and procedures manuals that outline specific activities performed by each position.

The policies and procedures that employees following in acquiring and maintaining human resources, capturing and maintaining employee data, paying employees for time worked, and recorded the related cash payroll liabilities and expenses are collectively referred to as:

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

This record, prepared by the payroll department, is a complete listing of salary or wage detail for all employees for a given time:

For each transaction cycle and each type of transaction, there are internal controls that help to minimize certain risk to the company.Using the terminology and framework developed in the text, describe the following for the fixed asset process.

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

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

Which of the following questions would be least likely to appear on an internal control questionnaire regarding the initiation and execution of new property, plant, and equipment purchases?

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

Internal control problems would be likely to result if a company's payroll department supervisor was also responsible for:

An electronic payroll time keeping device that collects time and attendance data when employees enter their time sheets is called:

This individual is responsible for distributing the signed paychecks on the designated pay day:

Which of the following procedures would be most useful in determining the effectiveness of a company's internal controls regarding the existence or occurrence of payroll transactions?

The internal control activity requiring the preparation of a bank reconciliation will minimize the risk of all of the following EXCEPT:

The internal control process of computing and recording the gains/losses for all fixed asset disposals will minimize the risk of:

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

There are many risks that may affect the payroll and fixed asset transactions.Which of the following is not one of those risks?

Assets to be included in the fixed asset pool would include all of the following, except:

This phase of the fixed asset processes relates to those required to maintain accurate and up-to-date records regarding all fixed assets throughout their useful lives.

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