Question 1

Companies that specialize in processing payroll are known as

Accepted Answer

A) paycheck distribution companies. 
B) payroll service bureaus. 
C) professional employer organizations. 
D) semi-governmental organizations. 
A) paycheck distribution companies. 
B) payroll service bureaus. 
C) professional employer organizations. 
D) semi-governmental organizations.

Question 2

Which of the following controls can minimize the threat of errors in processing payroll?

Accepted Answer

A) Redepositing unclaimed paychecks and investigating cause. 
B) Issuing earnings statements to employees. 
C) Using biometric authentication. 
D) Conducting criminal background investigation checks of all applicants for finance related positions. 
A) Redepositing unclaimed paychecks and investigating cause. 
B) Issuing earnings statements to employees. 
C) Using biometric authentication. 
D) Conducting criminal background investigation checks of all applicants for finance related positions.

Question 3

Which type of payroll report includes the details of the current paycheck and deductions as well as year-to-date totals?

Accepted Answer

A) Payroll register. 
B) Deduction register. 
C) Employee earnings statement. 
D) Federal W-4 form. 
A) Payroll register. 
B) Deduction register. 
C) Employee earnings statement. 
D) Federal W-4 form.

Question 4

A growing number of companies require some of their upper level executives to spend time performing job duties of rank-and-file employees.When the vice president of DaVita Inc. ,a major provider of dialysis treatment,spent three days working in one of the company's clinics,she understood

Accepted Answer

A) that the company's polyester uniform caused her to sweat a great deal. 
B) evidence of fraud in several clinic locations. 
C) how the need to respond to life-threatening emergencies can result in delays in completing corporate-mandated reports. 
D) situations where employees were treating customers properly. 
A) that the company's polyester uniform caused her to sweat a great deal. 
B) evidence of fraud in several clinic locations. 
C) how the need to respond to life-threatening emergencies can result in delays in completing corporate-mandated reports. 
D) situations where employees were treating customers properly.

Question 5

All of the following regarding payroll checks is correct except

Accepted Answer

A) access to payroll checks should be restricted. 
B) payroll checks should be sequentially pre-numbered. 
C) payroll checks should be drawn on the organization's regular bank account(s). 
D) the cashier should sign payroll checks. 
A) access to payroll checks should be restricted. 
B) payroll checks should be sequentially pre-numbered. 
C) payroll checks should be drawn on the organization's regular bank account(s). 
D) the cashier should sign payroll checks.

Question 6

Which of the following will limit a firm's potential loss exposure from paycheck forgery?

Accepted Answer

A) Segregation of check distribution from payroll duties. 
B) Prompt redeposit of unclaimed paychecks. 
C) A separate payroll bank account. 
D) Direct deposit of checks. 
A) Segregation of check distribution from payroll duties. 
B) Prompt redeposit of unclaimed paychecks. 
C) A separate payroll bank account. 
D) Direct deposit of checks.

Question 7

Discuss the various types and sources of input into the HRM/payroll cycle.

Accepted Answer

An HRM/payroll system relies on input fr

Question 8

Which of the following controls can minimize the threat of inaccurate time and attendance data?

Accepted Answer

A) Redepositing unclaimed paychecks and investigating cause. 
B) Issuing earnings statements to employees. 
C) Using biometric authentication. 
D) Conducting criminal background investigation checks of all applicants for finance related positions. 
A) Redepositing unclaimed paychecks and investigating cause. 
B) Issuing earnings statements to employees. 
C) Using biometric authentication. 
D) Conducting criminal background investigation checks of all applicants for finance related positions.

Question 9

Why is a separate payroll account used to clear payroll checks?

Accepted Answer

A) For internal control purposes,to help limit any exposure to loss by the company. 
B) To make bank reconciliation easier. 
C) To separate payroll and expense checks. 
D) All of the above are correct. 
A) For internal control purposes,to help limit any exposure to loss by the company. 
B) To make bank reconciliation easier. 
C) To separate payroll and expense checks. 
D) All of the above are correct.

Question 10

Which of the following is a control that addresses the threat of unauthorized changes to the payroll master file?

Accepted Answer

A) Restriction of access to the EFT system. 
B) Biometric authentication. 
C) Segregation of duties. 
D) Sound hiring procedures. 
A) Restriction of access to the EFT system. 
B) Biometric authentication. 
C) Segregation of duties. 
D) Sound hiring procedures.

Question 11

Falk Noam is the internal auditor for Matan Incorporated.Before investigating the HRM / payroll cycle at Matan,Falk decided to read up on the proper segregation of duties regarding payroll disbursement processes.For strongest segregation of duties,the ________ should distribute paychecks.

Accepted Answer

A) accounts payable department 
B) cashier 
C) internal audit department 
D) external auditor 
A) accounts payable department 
B) cashier 
C) internal audit department 
D) external auditor

Question 12

Which control would be most appropriate to address the problem of inaccurate payroll processing?

Accepted Answer

A) Segregation of duties: HRM department updates master data,but only payroll department issues paychecks. 
B) Redepositing unclaimed paychecks and investigating cause. 
C) Cross-footing of the payroll register. 
D) An imprest payroll checking account. 
A) Segregation of duties: HRM department updates master data,but only payroll department issues paychecks. 
B) Redepositing unclaimed paychecks and investigating cause. 
C) Cross-footing of the payroll register. 
D) An imprest payroll checking account.

Question 13

Which of the following is not a potential effect of inaccurate data on employee time cards?

Accepted Answer

A) Increased labor expenses. 
B) Erroneous labor expense reports. 
C) Damaged employee morale. 
D) Inaccurate calculation of overhead costs. 
A) Increased labor expenses. 
B) Erroneous labor expense reports. 
C) Damaged employee morale. 
D) Inaccurate calculation of overhead costs.

Question 14

Form 941

Accepted Answer

A) is filed each quarter to reconcile monthly tax payments with total tax liability for the quarter. 
B) is used in preparing labor-related reports for government agencies. 
C) is used for employee information and annual payroll reports. 
D) is used to document compliance with applicable regulations. 
A) is filed each quarter to reconcile monthly tax payments with total tax liability for the quarter. 
B) is used in preparing labor-related reports for government agencies. 
C) is used for employee information and annual payroll reports. 
D) is used to document compliance with applicable regulations.

Question 15

The purpose of a general ledger payroll clearing account is

Accepted Answer

A) to check the accuracy and completeness of payroll recording and its allocation to cost centers. 
B) to make the bank reconciliation easier. 
C) to make sure that all employees are paid correctly each week. 
D) to prevent the cashier from having complete control of the payroll cycle. 
A) to check the accuracy and completeness of payroll recording and its allocation to cost centers. 
B) to make the bank reconciliation easier. 
C) to make sure that all employees are paid correctly each week. 
D) to prevent the cashier from having complete control of the payroll cycle.

Question 16

The payroll transaction file should contain

Accepted Answer

A) entries to add new hires. 
B) time card data. 
C) changes in tax rates. 
D) All of the above are correct. 
A) entries to add new hires. 
B) time card data. 
C) changes in tax rates. 
D) All of the above are correct.

Question 17

Which of the following controls can minimize the threat of theft or fraudulent distribution of paychecks?

Accepted Answer

A) Redepositing unclaimed paychecks and investigating cause. 
B) Issuing earnings statements to employees. 
C) Using biometric authentication. 
D) Conducting criminal background investigation checks of all applicants for finance related positions. 
A) Redepositing unclaimed paychecks and investigating cause. 
B) Issuing earnings statements to employees. 
C) Using biometric authentication. 
D) Conducting criminal background investigation checks of all applicants for finance related positions.

Question 18

For the payroll register below,all the following processing controls would be useful except

Accepted Answer

A) Concurrent update control. 
B) Cross-footing balance test. 
C) Mathematical accuracy test. 
D) Hash total on Employee No. 
A) Concurrent update control. 
B) Cross-footing balance test. 
C) Mathematical accuracy test. 
D) Hash total on Employee No.

Question 19

Knowledge management systems (KMS)permit organizations to

Accepted Answer

A) store employee solutions to specific problems in a shared database. 
B) learn from individuals external to the organization. 
C) perform background checks on potential employees. 
D) gain competitive business intelligence on competitors. 
A) store employee solutions to specific problems in a shared database. 
B) learn from individuals external to the organization. 
C) perform background checks on potential employees. 
D) gain competitive business intelligence on competitors.

Question 20

What is the difference between a payroll service bureau and a professional employer organization?

Accepted Answer

A payroll service bureau is a company th

Exam 15: The Human Resources Management and Payroll Cycle

Companies that specialize in processing payroll are known as

Which of the following controls can minimize the threat of errors in processing payroll?

Which type of payroll report includes the details of the current paycheck and deductions as well as year-to-date totals?

A growing number of companies require some of their upper level executives to spend time performing job duties of rank-and-file employees.When the vice president of DaVita Inc. ,a major provider of dialysis treatment,spent three days working in one of the company's clinics,she understood

All of the following regarding payroll checks is correct except

Which of the following will limit a firm's potential loss exposure from paycheck forgery?

Discuss the various types and sources of input into the HRM/payroll cycle.

Which of the following controls can minimize the threat of inaccurate time and attendance data?

Why is a separate payroll account used to clear payroll checks?

Which of the following is a control that addresses the threat of unauthorized changes to the payroll master file?

Falk Noam is the internal auditor for Matan Incorporated.Before investigating the HRM / payroll cycle at Matan,Falk decided to read up on the proper segregation of duties regarding payroll disbursement processes.For strongest segregation of duties,the ________ should distribute paychecks.

Which control would be most appropriate to address the problem of inaccurate payroll processing?

Which of the following is not a potential effect of inaccurate data on employee time cards?

Form 941

The purpose of a general ledger payroll clearing account is

The payroll transaction file should contain

Which of the following controls can minimize the threat of theft or fraudulent distribution of paychecks?

For the payroll register below,all the following processing controls would be useful except

Knowledge management systems (KMS)permit organizations to

What is the difference between a payroll service bureau and a professional employer organization?

Conceptual Foundations of Accounting Information Systems

Overview of Transaction Processing and Enterprise Resource Planning Systems

Systems Documentation Techniques

Relational Databases

Computer Fraud

Computer Fraud and Abuse Techniques

Control and Accounting Information Systems

Controls for Information Security

Confidentiality and Privacy Controls

Processing Integrity and Availability Controls

Auditing Computer-Based Information Systems

The Revenue Cycle: Sales to Cash Collections

The Expenditure Cycle: Purchasing to Cash Disbursements

The Production Cycle

General Ledger and Reporting System

Database Design Using the Rea Data Model

Implementing an Rea Model in a Relational Database

Special Topics in Rea Modeling

Introduction to Systems Development and Systems Analysis

Ais Development Strategies

Systems Design, implementation, and Operation

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