Question 1

What types of audit procedures are typically emphasized during the audit of the payroll cycle?

Accepted Answer

Auditors typically e

Question 2

When labor is a material factor in inventory valuation,the auditor should place special emphasis on testing the internal controls concerning:

Accepted Answer

A)  fictitious employees. 
B)  authorization of wage rates. 
C)  proper classification of payroll transactions. 
D)  completeness of recorded transactions. 
A)  fictitious employees. 
B)  authorization of wage rates. 
C)  proper classification of payroll transactions. 
D)  completeness of recorded transactions.

Question 3

Stock-based compensation plans may increase the inherent risks related to the accounting and disclosure requirements.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is a major balance-related audit objective in testing payroll liabilities?

Accepted Answer

A)  Payroll tax expense is properly recorded. 
B)  Transactions in the payroll and personnel cycle are recorded in the proper period. 
C)  Accrual of salaries is the same as the amounts paid on the payroll tax returns. 
D)  Time records are recorded by supervisors. 
A)  Payroll tax expense is properly recorded. 
B)  Transactions in the payroll and personnel cycle are recorded in the proper period. 
C)  Accrual of salaries is the same as the amounts paid on the payroll tax returns. 
D)  Time records are recorded by supervisors.

Question 5

Which of the following is not one of the business functions for the payroll and personnel cycle?

Accepted Answer

A)  Payment of payroll 
B)  Timekeeping and payroll preparation 
C)  Reconciliation of payroll account 
D)  Human resources and employment 
A)  Payment of payroll 
B)  Timekeeping and payroll preparation 
C)  Reconciliation of payroll account 
D)  Human resources and employment

Question 6

What is one audit procedure that may be used to test for proper handling of terminated employees?

Accepted Answer

A procedure that tests for proper handli

Question 7

The two major balance-related audit objectives in testing payroll liabilities are accuracy and cutoff.

Accepted Answer

A) True 
 B)False

Question 8

Auditors seldom expect to find misstatements when testing payroll transactions.

Accepted Answer

A) True 
 B)False

Question 9

While most cycles include at least two classes of transactions,the payroll and personnel cycle includes only one class of transactions.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following includes all payroll transactions processed by the accounting system for a given period of time?

Accepted Answer

A)  Payroll journal 
B)  Payroll transaction file 
C)  Time report 
D)  Payroll summary 
A)  Payroll journal 
B)  Payroll transaction file 
C)  Time report 
D)  Payroll summary

Question 11

The audit procedure "recompute hours worked from time cards" is normally performed when testing the completeness objective for payroll.

Accepted Answer

A) True 
 B)False

Question 12

Mathews and Company has $112,000 in an accrued payroll account.The company's weekly payroll is $186,700 and the accrual represents 3 days out o 5 working days.If the auditor has determined that controls are effective over payroll,what additional work should the auditor perform for this account?

Accepted Answer

186,700 *0.60 (3/5)= 112,020 w

Question 13

In auditing payroll,which of the following procedures will normally require the least amount of auditor time under normal circumstances?

Accepted Answer

A)  Tests of controls 
B)  Substantive tests of transactions 
C)  Analytical procedures 
D)  Tests of details of balances 
A)  Tests of controls 
B)  Substantive tests of transactions 
C)  Analytical procedures 
D)  Tests of details of balances

What types of audit procedures are typically emphasized during the audit of the payroll cycle?

When labor is a material factor in inventory valuation,the auditor should place special emphasis on testing the internal controls concerning:

Stock-based compensation plans may increase the inherent risks related to the accounting and disclosure requirements.

Which of the following is a major balance-related audit objective in testing payroll liabilities?

Which of the following is not one of the business functions for the payroll and personnel cycle?

What is one audit procedure that may be used to test for proper handling of terminated employees?

The two major balance-related audit objectives in testing payroll liabilities are accuracy and cutoff.

Auditors seldom expect to find misstatements when testing payroll transactions.

While most cycles include at least two classes of transactions,the payroll and personnel cycle includes only one class of transactions.

Which of the following includes all payroll transactions processed by the accounting system for a given period of time?

The audit procedure "recompute hours worked from time cards" is normally performed when testing the completeness objective for payroll.

Mathews and Company has $112,000 in an accrued payroll account.The company's weekly payroll is $186,700 and the accrual represents 3 days out o 5 working days.If the auditor has determined that controls are effective over payroll,what additional work should the auditor perform for this account?

In auditing payroll,which of the following procedures will normally require the least amount of auditor time under normal circumstances?

The Assurance Services Market

The Audit Standards Setting Process

Audit Reports

Legal Liability Considerations for Auditors

Ethics and the Audit Profession

Audit Responsibilities and Objectives

Nature and Type of Audit Evidence

Audit Planning

Considering Materiality and Audit Risk

Considering Internal Control

Considering the Risk of Fraud

Implications of Information Technology for the Audit Process

Developing the Overall Audit Plan and Audit Program

Audit of the Sales and Collection Cycle: Tests of Controls and Substantive Tests of Transactions

Audit Sampling for Tests of Controls and Substantive Tests of Transactions

Completing the Tests in the Sales and Collection Cycle: Accounts Receivable

Audit Sampling for Tests of Details of Balances

Audit of the Acquisition and Payment Cycle: Tests of Controls, Substantive Tests of Transactions, and Accounts Payable

Completing the Tests in the Acquisition and Payment Cycle: Verification of Selected Accounts

Audit of the Inventory and Warehousing Cycle

Audit of the Capital Acquisition and Repayment Cycle

Audit of Cash and Financial Instruments

Audit Completion

Other Assurance Services

Internal and Governmental Financial Auditing and Operational Auditing

Filters

Exam 21: Audit of the Payroll and Personnel Cycle

What types of audit procedures are typically emphasized during the audit of the payroll cycle?

When labor is a material factor in inventory valuation,the auditor should place special emphasis on testing the internal controls concerning:

Stock-based compensation plans may increase the inherent risks related to the accounting and disclosure requirements.

Which of the following is a major balance-related audit objective in testing payroll liabilities?

Which of the following is not one of the business functions for the payroll and personnel cycle?

What is one audit procedure that may be used to test for proper handling of terminated employees?

The two major balance-related audit objectives in testing payroll liabilities are accuracy and cutoff.

Auditors seldom expect to find misstatements when testing payroll transactions.

While most cycles include at least two classes of transactions,the payroll and personnel cycle includes only one class of transactions.

Which of the following includes all payroll transactions processed by the accounting system for a given period of time?

The audit procedure "recompute hours worked from time cards" is normally performed when testing the completeness objective for payroll.

Mathews and Company has $112,000 in an accrued payroll account.The company's weekly payroll is $186,700 and the accrual represents 3 days out o 5 working days.If the auditor has determined that controls are effective over payroll,what additional work should the auditor perform for this account?

In auditing payroll,which of the following procedures will normally require the least amount of auditor time under normal circumstances?

The Assurance Services Market

The Audit Standards Setting Process

Audit Reports

Legal Liability Considerations for Auditors

Ethics and the Audit Profession

Audit Responsibilities and Objectives

Nature and Type of Audit Evidence

Audit Planning

Considering Materiality and Audit Risk

Considering Internal Control

Considering the Risk of Fraud

Implications of Information Technology for the Audit Process

Developing the Overall Audit Plan and Audit Program

Audit of the Sales and Collection Cycle: Tests of Controls and Substantive Tests of Transactions

Audit Sampling for Tests of Controls and Substantive Tests of Transactions

Completing the Tests in the Sales and Collection Cycle: Accounts Receivable

Audit Sampling for Tests of Details of Balances

Audit of the Acquisition and Payment Cycle: Tests of Controls, Substantive Tests of Transactions, and Accounts Payable

Completing the Tests in the Acquisition and Payment Cycle: Verification of Selected Accounts

Audit of the Inventory and Warehousing Cycle

Audit of the Capital Acquisition and Repayment Cycle

Audit of Cash and Financial Instruments

Audit Completion

Other Assurance Services

Internal and Governmental Financial Auditing and Operational Auditing

Filters