Exam 12: Auditing the Human Resource Management Process

Employees must complete a W-4 form to authorize insurance deductions from his or her pay.

The purpose of segregating the duties of distributing payroll checks and hiring personnel is to separate the:

Possible misstatements related to the occurrence assertion for payroll transactions include all of the following except:

In the weekly computer run to prepare payroll checks, a check was printed for an employee who had been terminated the previous week. Which of the following controls, if properly utilized, would have been most effective in preventing the error or ensuring its prompt detection?

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

Which of the following circumstances most likely would cause an auditor to suspect an employee payroll fraud scheme?

Proper segregation of duties is critical for the human resource management process.

An effective system of internal control over the payroll function would include:

Which of the following is an effective internal control used to prove that production department employees are properly validating payroll time sheets?

Transactions processed through the payroll process include all of the following except:

The human resource function is responsible for managing the personnel needs of the organization.

Which of the following is the best way for an auditor to determine that every name on a company's payroll is that of a bona fide employee presently on the job?

All of the following are incorporated into valuation models for share-based compensation except:

Generally, is the inherent risk level for the human resource management process set at low, moderate or high? For what area of the process might the appropriate level differ from the previous answer? Why?

Payroll-related expenses normally are not a material cost to the organization.

Vouching selected items from the payroll register to employee time sheets that have been approved by supervisory personnel provides evidence that:

Tests of details of transactions are often conducted in conjunction with tests of controls.

Comparing amounts selected from the payroll account analysis for payroll accruals to supporting documentation would provide evidence primarily for which assertion?

Effective internal control over the payroll function would include which of the following?

Comparing selected items from the payroll register to employee time records that have been approved by supervisory personnel tests which of the following assertions for payroll expense?