Exam 6: The Expenditure Cycle Part II: Payroll Processing and Fixed Asset Procedures

Personnel action forms are used to do all of the following except

Timekeeping is part of the personnel function.

In a manufacturing firm,employees typically fill out two different documents regarding their time worked.What are they? Why are there two?

Where does the responsibility lie for reconciling the labor distribution summary and the payroll disbursement voucher?

The Golf Club Company makes custom golf clubs.The manufacturing supervisor interviews people who have specialized manufacturing skills,and he informs payroll when an employee is hired.The employees use a time clock to record the hours they work.The employees are also required to keep a record of the time they spend working on each order.The supervisor approves all time cards. The accountant analyzes the job tickets and prepares a labor distribution summary.Payroll prepares the payroll register and paychecks.The supervisor distributes the paychecks to the employees.Payroll informs cash disbursement of the funds required to cover the entire payroll amount.The cash disbursements clerk ensures that there are adequate funds in the company's regular checking account to cover the payroll. Describe at least three internal control weaknesses;for each weakness suggest an improvement to internal control.

The document that records the total amount of time spent on a production job is the

Depreciation

Inventory control performs the formal record keeping function for fixed assets.

What is recorded by the asset maintenance part of the Fixed Asset System?

Describe an internal control procedure that would prevent a supervisor from stealing the unclaimed paychecks of employees who have been terminated.

The Fixed Asset Systems does all of the following except

Describe an internal control that would prevent the charging of depreciation expense to the maintenance department for a sweeper that is now located in and used by the engineering department.

Which transaction is not processed in the Fixed Asset System?

Which internal control is not an important part of the payroll system?

Accounting records that provide the audit trail for payroll include all of the following except

Ideally,payroll checks are written on a special bank account used only for payroll.

Explain the purpose of each of the following documents used in the payroll system: the personnel action form,the job ticket,the time card.

Which department authorizes changes to employee pay rates?

Which documents prompt the fixed asset department to create a fixed asset record?

The payroll department is responsible for both updating the employee records and writing paychecks.