Question 1

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 2

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

Accepted Answer

A) payroll 
B) timekeeping 
C) production 
D) HRM 
A) payroll 
B) timekeeping 
C) production 
D) HRM

Question 3

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 4

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 5

Accountants can help executive compensation plan boards

Accepted Answer

A) comply with legal and regulatory requirements. 
B) by identifying the best ways to keep the details of compensation plans out of the hands of external parties. 
C) avoid paying excessive amounts of "perks" to executives. 
D) distribute information regarding how well each executive is performing their job. 
A) comply with legal and regulatory requirements. 
B) by identifying the best ways to keep the details of compensation plans out of the hands of external parties. 
C) avoid paying excessive amounts of "perks" to executives. 
D) distribute information regarding how well each executive is performing their job.

Question 6

The following control can reduce the distribution of fraudulent paychecks.

Accepted Answer

A) Have internal audit investigate unclaimed paychecks. 
B) Allow department managers to investigate unclaimed paychecks. 
C) Immediately mark "void" across all unclaimed paychecks. 
D) Match up all paychecks with time cards. 
A) Have internal audit investigate unclaimed paychecks. 
B) Allow department managers to investigate unclaimed paychecks. 
C) Immediately mark "void" across all unclaimed paychecks. 
D) Match up all paychecks with time cards.

Question 7

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 8

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 9

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 10

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 11

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.

Question 12

True or False: Batch processing continues to be widely used to process payroll transactions.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

An HRM/payroll system relies on input fr

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

Payroll deductions fall into the broad categories of ________ and ________.

Accepted Answer

A) payroll tax withholdings; voluntary deductions 
B) unemployment; social security taxes 
C) unemployment taxes; income taxes 
D) voluntary deductions; income taxes 
A) payroll tax withholdings; voluntary deductions 
B) unemployment; social security taxes 
C) unemployment taxes; income taxes 
D) voluntary deductions; income taxes

Question 16

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 17

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

Accepted Answer

Many problems may result when there are

Question 18

The average annual management salary at Iyov Management is $80,000.If the average turnover rate for employees is ten per year,what is the approximate average annual cost of turnover?

Accepted Answer

A) $80,000 
B) $400,000 
C) $800,000 
D) $1,200,000 
A) $80,000 
B) $400,000 
C) $800,000 
D) $1,200,000

Question 19

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.

Question 20

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

Exam 15: The Human Resources Management and Payroll Cycle

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

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

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

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

Accountants can help executive compensation plan boards

The following control can reduce the distribution of fraudulent paychecks.

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.

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

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.

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

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

True or False: Batch processing continues to be widely used to process payroll transactions.

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

Form 941

Payroll deductions fall into the broad categories of ________ and ________.

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

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

The average annual management salary at Iyov Management is $80,000.If the average turnover rate for employees is ten per year,what is the approximate average annual cost of turnover?

Pay rate information should be stored in

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

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

Filters

Payroll deductions fall into the broad categories of and .