Exam 12: Auditing the Human Resource Management Process

When an auditor sets control risk low,sufficient evidence can be obtained for most payroll accounts through an understanding of internal controls,substantive analytical procedures,and tests of details of transactions.However,there are several accounts in the payroll cycle that may require more attention.Name the accounts and explain why the additional testing is necessary.

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

A CPA reviews an entity's payroll procedures.The CPA would consider internal control to be less than effective if a payroll department supervisor was assigned the responsibility for

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?

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

Which of the following could test the assertion of classification for payroll-related liabilities?

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

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

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?

An auditor would consider internal control over an entity's payroll procedures to be ineffective if the payroll department supervisor is responsible for

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

When control risk is assessed as low for assertions related to payroll,substantive tests of payroll balances most likely would be limited to applying substantive analytical procedures and

Which of the following internal control objectives is likely to be a larger concern in the audit of the payroll cycle?

Effective internal control over unclaimed payroll checks that are kept by the Treasury Department would include Accounting Department procedures that require

Which of the following is an effective internal control used to prove that production department employees are properly validating payroll timecards at a time-recording station?

A large retail enterprise has established a policy that requires that the paymaster deliver all unclaimed payroll checks to the Internal Auditing Department at the end of each payroll distribution day.This policy was most likely adopted in order to

All of the following are incorporated into valuation models except:

Which of the following could test the occurrence assertion for payroll-related liabilities?

Which of the following internal control activities could best prevent direct labor from being charged to manufacturing overhead?

An auditor most likely would extend substantive tests of payroll when