Question 1

A "zero balance check" refers to which of the following control procedures?

Accepted Answer

A)  a type of batch total 
B)  cross-footing the payroll register 
C)  the payroll clearing account shows a zero balance once all entries are posted 
D)  trial balance showing that debits equal credits 
A)  a type of batch total 
B)  cross-footing the payroll register 
C)  the payroll clearing account shows a zero balance once all entries are posted 
D)  trial balance showing that debits equal credits

Question 2

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.

Question 3

Which organization provides payroll processing as well as other HRM services,like employee benefit design and administration?

Accepted Answer

A)  title companies 
B)  payroll service bureau 
C)  professional employer organization 
D)  paycheck distribution companies 
A)  title companies 
B)  payroll service bureau 
C)  professional employer organization 
D)  paycheck distribution companies

Question 4

The employer pays a portion of some payroll taxes and employee benefits.Both the employee and employer pay which benefit or tax listed below?

Accepted Answer

A)  social security taxes 
B)  federal income taxes 
C)  state income taxes 
D)  none of the above 
A)  social security taxes 
B)  federal income taxes 
C)  state income taxes 
D)  none of the above

Question 5

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 6

Describe benefits and threats of incentive and bonus programs.

Accepted Answer

Sales staffs are often paid either on a

Question 7

The sales department administrative assistant has been assigning phone order sales to her brother-in-law,a company sales person.Company policy is to pay commissions only on orders directly received by sales people,not on orders received over the phone.The resulting fraudulent commission payments might best have been prevented by requiring that

Accepted Answer

A)  sales commission statements be supported by sales order forms signed by the customer and approved by the sales manager. 
B)  sales order forms be prenumbered and accounted for by the sales department manager. 
C)  sales orders and commission statements be approved by the accounting department. 
D)  disbursement vouchers for commission payments be reviewed by the internal audit department and compared to sales commission statements and sales orders. 
A)  sales commission statements be supported by sales order forms signed by the customer and approved by the sales manager. 
B)  sales order forms be prenumbered and accounted for by the sales department manager. 
C)  sales orders and commission statements be approved by the accounting department. 
D)  disbursement vouchers for commission payments be reviewed by the internal audit department and compared to sales commission statements and sales orders.

Question 8

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 record payroll.

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 9

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 10

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)  international airline 
B)  law firm 
C)  automobile manufacturer 
D)  railroad 
A)  international airline 
B)  law firm 
C)  automobile manufacturer 
D)  railroad

Question 11

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)  Banks don't like to commingle 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)  Banks don't like to commingle payroll and expense checks. 
D)  All of the above are correct.

Question 12

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

Accepted Answer

Many problems may result when there are

Question 13

Which of the following statements is false regarding the use of incentives,commissions and bonuses in the payroll system?

Accepted Answer

A)  Using incentives, commissions, and bonuses requires linking the payroll system and the information systems of sales and other cycles in order to collect the data used to calculate bonuses. 
B)  Bonus/incentive schemes must be properly designed with realistic, attainable goals that can be objectively measured. 
C)  Incentive schemes can result in undesirable behavior. 
D)  All of the above are true. 
A)  Using incentives, commissions, and bonuses requires linking the payroll system and the information systems of sales and other cycles in order to collect the data used to calculate bonuses. 
B)  Bonus/incentive schemes must be properly designed with realistic, attainable goals that can be objectively measured. 
C)  Incentive schemes can result in undesirable behavior. 
D)  All of the above are true.

Question 14

Using financial incentives requires organizations to

Accepted Answer

A)  pay employees less than they would have to if pay was a fixed salary. 
B)  better monitor employee attendance. 
C)  link the payroll system to other cycles to calculate incentive payments. 
D)  better monitor employee effort. 
A)  pay employees less than they would have to if pay was a fixed salary. 
B)  better monitor employee attendance. 
C)  link the payroll system to other cycles to calculate incentive payments. 
D)  better monitor employee effort.

Question 15

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 16

When using electronic documents,________ increase(s)the accuracy of data entry.

Accepted Answer

A)  access controls 
B)  separation of duties 
C)  general controls 
D)  application controls 
A)  access controls 
B)  separation of duties 
C)  general controls 
D)  application controls

Question 17

Involving accountants in executive compensation plans is often especially helpful

Accepted Answer

A)  in keeping track of the executive compensation plan. 
B)  in identifying the appropriate metrics to use when linking compensation to performance. 
C)  in reducing the total amount of compensation paid to executives. 
D)  in suggesting the appropriate amount of compensation executives should be paid. 
A)  in keeping track of the executive compensation plan. 
B)  in identifying the appropriate metrics to use when linking compensation to performance. 
C)  in reducing the total amount of compensation paid to executives. 
D)  in suggesting the appropriate amount of compensation executives should be paid.

Question 18

A workforce inventory report

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 19

Which activity below is not performed by Human Resources management (HRM)?

Accepted Answer

A)  compensation 
B)  training 
C)  discharge 
D)  recruitment and hiring 
A)  compensation 
B)  training 
C)  discharge 
D)  recruitment and hiring

Question 20

What is a potential threat to the specific activity of payroll processing?

Accepted Answer

A)  hiring unqualified employees 
B)  poor system performance 
C)  violations of employment laws 
D)  unauthorized changes to the payroll master file 
A)  hiring unqualified employees 
B)  poor system performance 
C)  violations of employment laws 
D)  unauthorized changes to the payroll master file

Exam 15: The Human Resources Management and Payroll Cycle

A "zero balance check" refers to which of the following control procedures?

Source data automation is often effective in reducing

Which organization provides payroll processing as well as other HRM services,like employee benefit design and administration?

The employer pays a portion of some payroll taxes and employee benefits.Both the employee and employer pay which benefit or tax listed below?

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?

Describe benefits and threats of incentive and bonus programs.

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 record payroll.

Form 941

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

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

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

Which of the following statements is false regarding the use of incentives,commissions and bonuses in the payroll system?

Using financial incentives requires organizations to

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

When using electronic documents,________ increase(s)the accuracy of data entry.

Involving accountants in executive compensation plans is often especially helpful

A workforce inventory report

Which activity below is not performed by Human Resources management (HRM)?

What is a potential threat to the specific activity of payroll processing?

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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