Question 1

All of the following are controls that should be implemented in a payroll process,except

Accepted Answer

A)  supervisors distribute paychecks since they should know all employees in their department. 
B)  someone independent of the payroll process should reconcile the payroll bank account. 
C)  sequential numbering of paychecks and accounting for the numbers. 
D)  restrict access to blank payroll checks and documents. 
A)  supervisors distribute paychecks since they should know all employees in their department. 
B)  someone independent of the payroll process should reconcile the payroll bank account. 
C)  sequential numbering of paychecks and accounting for the numbers. 
D)  restrict access to blank payroll checks and documents. A

Question 2

Executive immersion experiences are important because

Accepted Answer

A)  CEOs often have no idea what rank-and-file employees do on a daily basis. 
B)  employees who have positive attitudes contribute to increasing company profits. 
C)  many employees feel upper management is out of touch. 
D)  it is important for organizations to take social responsibility seriously. 
A)  CEOs often have no idea what rank-and-file employees do on a daily basis. 
B)  employees who have positive attitudes contribute to increasing company profits. 
C)  many employees feel upper management is out of touch. 
D)  it is important for organizations to take social responsibility seriously. B

Question 3

Pay rate information should be stored in

Accepted Answer

A)  employees' personnel files. 
B)  employee subsidiary ledgers. 
C)  the payroll master file. 
D)  electronic time cards. 
A)  employees' personnel files. 
B)  employee subsidiary ledgers. 
C)  the payroll master file. 
D)  electronic time cards. C

Question 4

Identify the two types of payroll deductions and give two examples of each type.

Accepted Answer

Payroll deductions include: Payroll tax

Question 5

Which of the following is generally not a major sourceDifficulty : of input to a payroll system?

Accepted Answer

A)  payroll rate changes 
B)  time and attendance data 
C)  checks to insurance and benefits providers 
D)  withholdings and deduction requests from employees 
A)  payroll rate changes 
B)  time and attendance data 
C)  checks to insurance and benefits providers 
D)  withholdings and deduction requests from employees

Question 6

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 7

Identify the following item that should contribute to the efficiency of a payroll system.

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 8

________ 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)  none of the above 
A)  Badge readers 
B)  Electronic time clocks 
C)  Magnetic cards 
D)  none of the above

Question 9

Many companies offer their employees a "cafeteria" approach to voluntary benefits in which employees can pick and choose the benefits they want.This plan is normally called a(n)

Accepted Answer

A)  elective plan. 
B)  menu options benefit plan. 
C)  flexible benefit plan. 
D)  buffet plan. 
A)  elective plan. 
B)  menu options benefit plan. 
C)  flexible benefit plan. 
D)  buffet plan.

Question 10

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)  earnings statement 
D)  federal W-4 form 
A)  payroll register 
B)  deduction register 
C)  earnings statement 
D)  federal W-4 form

Question 11

What is the best control to reduce the risk of losing payroll data?

Accepted Answer

A)  passwords 
B)  physical security controls 
C)  backup and disaster recovery procedures 
D)  encryption 
A)  passwords 
B)  physical security controls 
C)  backup and disaster recovery procedures 
D)  encryption

Question 12

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 13

Describe the basic activities in an HRM/payroll cycle.

Accepted Answer

The HRM/payroll cycle is a recurring set

Question 14

Who does the payroll system issue checks to?

Accepted Answer

A)  employees and to banks participating in direct deposit 
B)  a company payroll bank account 
C)  government agencies 
D)  All of the above are correct. 
A)  employees and to banks participating in direct deposit 
B)  a company payroll bank account 
C)  government agencies 
D)  All of the above are correct.

Question 15

As each payroll transaction is processed,the system should also

Accepted Answer

A)  allocate labor costs to appropriate general ledger accounts 
B)  use cumulative totals generated from a payroll to create a summary journal entry to be posted to the general ledger 
C)  both A and B above 
D)  The HRM system should not perform either activity A or B. 
A)  allocate labor costs to appropriate general ledger accounts 
B)  use cumulative totals generated from a payroll to create a summary journal entry to be posted to the general ledger 
C)  both A and B above 
D)  The HRM system should not perform either activity A or B.

Question 16

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 17

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

Accepted Answer

A)  field checks 
B)  batch totals 
C)  segregation of duties 
D)  sound hiring procedures 
A)  field checks 
B)  batch totals 
C)  segregation of duties 
D)  sound hiring procedures

Question 18

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 19

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 20

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

Exam 15: The Human Resources Management and Payroll Cycle

All of the following are controls that should be implemented in a payroll process,except

Executive immersion experiences are important because

Pay rate information should be stored in

Identify the two types of payroll deductions and give two examples of each type.

Which of the following is generally not a major sourceDifficulty : of input to a payroll system?

The purpose of a general ledger payroll clearing account is

Identify the following item that should contribute to the efficiency of a payroll system.

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

Many companies offer their employees a "cafeteria" approach to voluntary benefits in which employees can pick and choose the benefits they want.This plan is normally called a(n)

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

What is the best control to reduce the risk of losing payroll data?

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

Describe the basic activities in an HRM/payroll cycle.

Who does the payroll system issue checks to?

As each payroll transaction is processed,the system should also

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

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

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

The payroll transaction file should contain

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

Accounting Information Systems: an Overview

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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