Question 1

________ are used to transmit time and attendance data directly to the payroll processing system.

Accepted Answer

A) Badge readers 
B) Electronic time clocks 
C) Magnetic cards 
D) RFID tags 
A) Badge readers 
B) Electronic time clocks 
C) Magnetic cards 
D) RFID tags B

Question 2

Explain the functions of the payroll register,deduction register,and earnings statement.

Accepted Answer

The payroll register is a report that lists each employee's gross pay,payroll deductions,and net pay for each pay period.The deduction register lists the voluntary deductions for each employee.The earnings statement lists the amount of gross pay,deductions,and net pay for the current period,as well as providing year-to-date totals.

Question 3

Source data automation is often effective in reducing

Accepted Answer

A) unintentional errors. 
B) intentional errors. 
C) accuracy. 
D) theft. 
A) unintentional errors. 
B) intentional errors. 
C) accuracy. 
D) theft. C

Question 4

A report of wages and withholdings for each employee is called

Accepted Answer

A) form W-2. 
B) form W-3. 
C) form 1099-Misc. 
D) form 941. 
A) form W-2. 
B) form W-3. 
C) form 1099-Misc. 
D) form 941.

Question 5

The HRM department should immediately delete records of employees who quit to prevent other employees from assuming their identities.

Accepted Answer

A) True 
 B)False

Question 6

The results of an internal audit finds that there is a problem with inaccurate time data being entered into the payroll system.What is an applicable control that can help prevent this event from occurring in the future?

Accepted Answer

A) Proper segregation of duties. 
B) Automation of data collection. 
C) Sound hiring procedures. 
D) Review of appropriate performance metrics. 
A) Proper segregation of duties. 
B) Automation of data collection. 
C) Sound hiring procedures. 
D) Review of appropriate performance metrics.

Question 7

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 8

Identify the firm below where employees' knowledge is likely to be more valuable than the value of a company's tangible assets.

Accepted Answer

A) An international airline company. 
B) A law firm. 
C) An automobile manufacturer. 
D) A grocery store. 
A) An international airline company. 
B) A law firm. 
C) An automobile manufacturer. 
D) A grocery store.

Question 9

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

Accepted Answer

A payroll service bureau is a company th

Question 10

The document that lists each employee's gross pay,payroll deductions,and net pay in a multicolumn format is called

Accepted Answer

A) an employee earnings statement. 
B) the payroll register. 
C) a deduction register. 
D) an employee time sheet summary. 
A) an employee earnings statement. 
B) the payroll register. 
C) a deduction register. 
D) an employee time sheet summary.

Question 11

Which department should have the sole ability to provide information to the AIS about hiring,terminations,and pay rate changes?

Accepted Answer

A) Accounting. 
B) Benefit. 
C) Production. 
D) HRM. 
A) Accounting. 
B) Benefit. 
C) Production. 
D) HRM.

Question 12

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 13

Which of the following is a control that can be implemented to help prevent paychecks being issued to a "phantom" or "ghost" employee?

Accepted Answer

A) The cashier should sign all payroll checks. 
B) Sequentially prenumber all payroll checks. 
C) Use an imprest account to clear payroll checks. 
D) Paychecks should be physically distributed by someone who does not authorize time data or record payroll. 
A) The cashier should sign all payroll checks. 
B) Sequentially prenumber all payroll checks. 
C) Use an imprest account to clear payroll checks. 
D) Paychecks should be physically distributed by someone who does not authorize time data or record payroll.

Question 14

Professional employer organizations (PEOs)are especially attractive to small and mid-sized businesses for all of the following reasons except

Accepted Answer

A) reduced costs. 
B) wider range of benefits. 
C) freeing up computer resources. 
D) improved service quality. 
A) reduced costs. 
B) wider range of benefits. 
C) freeing up computer resources. 
D) improved service quality.

Question 15

Discuss the threat of unauthorized changes to the payroll master file and its consequences.

Accepted Answer

Many problems may result when there are

Question 16

Who does the payroll system issue checks to?

Accepted Answer

A) Employees and to banks participating in direct deposit. 
B) The company's payroll bank account. 
C) Insurance companies. 
D) All of the above are correct. 
A) Employees and to banks participating in direct deposit. 
B) The company's payroll bank account. 
C) Insurance companies. 
D) All of the above are correct.

Question 17

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 18

For recording time spent on specific work projects,manufacturing companies usually use a

Accepted Answer

A) job time ticket. 
B) time card. 
C) time clock. 
D) labor time card. 
A) job time ticket. 
B) time card. 
C) time clock. 
D) labor time card.

Question 19

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 20

Experts estimate that,on average,the costs associated with replacing an employee are about ________ the employee's annual salary.

Accepted Answer

A) 0.5 time 
B) 1 time 
C) 1.5 times 
D) 2 times 
A) 0.5 time 
B) 1 time 
C) 1.5 times 
D) 2 times

Exam 15: The Human Resources Management and Payroll Cycle

________ are used to transmit time and attendance data directly to the payroll processing system.

Explain the functions of the payroll register,deduction register,and earnings statement.

Source data automation is often effective in reducing

A report of wages and withholdings for each employee is called

The HRM department should immediately delete records of employees who quit to prevent other employees from assuming their identities.

The results of an internal audit finds that there is a problem with inaccurate time data being entered into the payroll system.What is an applicable control that can help prevent this event from occurring in the future?

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

Identify the firm below where employees' knowledge is likely to be more valuable than the value of a company's tangible assets.

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

The document that lists each employee's gross pay,payroll deductions,and net pay in a multicolumn format is called

Which department should have the sole ability to provide information to the AIS about hiring,terminations,and pay rate changes?

The payroll transaction file should contain

Which of the following is a control that can be implemented to help prevent paychecks being issued to a "phantom" or "ghost" employee?

Professional employer organizations (PEOs)are especially attractive to small and mid-sized businesses for all of the following reasons except

Discuss the threat of unauthorized changes to the payroll master file and its consequences.

Who does the payroll system issue checks to?

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

For recording time spent on specific work projects,manufacturing companies usually use a

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.

Experts estimate that,on average,the costs associated with replacing an employee are about ________ the employee's annual salary.

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

Filters