Question 1

Which of the following activities is usually performed by a service provider?

Accepted Answer

A)  Updating the payroll master file. 
B)  Submitting summary information back to the organization for use in the accounting process. 
C)  Distributing paychecks. 
D)  Both a and b. 
A)  Updating the payroll master file. 
B)  Submitting summary information back to the organization for use in the accounting process. 
C)  Distributing paychecks. 
D)  Both a and b.

Question 2

Most firms process their own payroll.

Accepted Answer

A) True 
 B)False

Question 3

Auditors report their chargeable hours using timesheets.

Accepted Answer

A) True 
 B)False

Question 4

Tracing wages paid to the union contract listing wages per job is an example of the rights and obligations assertion.

Accepted Answer

A) True 
 B)False

Question 5

Assume the role of a senior auditor on Genetech Corp, a large public corporation that performs evaluations of lab results submitted by physicians and hospitals. You have been assigned the task of planning and performing tests over the client's human resources cycle.
(a)What are the primary processes about which your work should be concerned?
(b) Discuss the types of activities and transactions significant to the human resources cycle.
(c) Which accounts might be significantly affected by this cycle?

Accepted Answer

(a) As this is a service industry client

Question 6

An imprest payroll account:

Accepted Answer

A)  is similar to other imprest accounts. 
B)  balance should reach zero. 
C)  serves to make reconciliation easier. 
D)  All of the above. 
A)  is similar to other imprest accounts. 
B)  balance should reach zero. 
C)  serves to make reconciliation easier. 
D)  All of the above.

Question 7

AS#5 states that:

Accepted Answer

A)  service providers are part of the client's IT system. 
B)  service providers must be audited as part of the ICFR. 
C)  service providers must be considered when evaluating client risk. 
D)  None of the above. 
A)  service providers are part of the client's IT system. 
B)  service providers must be audited as part of the ICFR. 
C)  service providers must be considered when evaluating client risk. 
D)  None of the above.

Question 8

Substantive analytical procedures for payroll include:

Accepted Answer

A)  comparing compensation expense account balances with prior year and budget. 
B)  comparing compensation expense as a percent of total expense. 
C)  comparing compensation expense as a percent of total sales. 
D)  All of the above. 
A)  comparing compensation expense account balances with prior year and budget. 
B)  comparing compensation expense as a percent of total expense. 
C)  comparing compensation expense as a percent of total sales. 
D)  All of the above.

Question 9

Most auditors perform an audit of outsourced service firms themselves.

Accepted Answer

A) True 
 B)False

Question 10

The difference between a SAS 70 Type I and Type II report is:

Accepted Answer

A)  Type II reports extend Type I reports by testing the operating effectiveness of controls. 
B)  Type II reports extend Type I reports by testing the design effectiveness of internal control. 
C)  Type II reports occur prior to year-end. 
D)  Answers C and A. 
A)  Type II reports extend Type I reports by testing the operating effectiveness of controls. 
B)  Type II reports extend Type I reports by testing the design effectiveness of internal control. 
C)  Type II reports occur prior to year-end. 
D)  Answers C and A.

Which of the following activities is usually performed by a service provider?

Most firms process their own payroll.

Auditors report their chargeable hours using timesheets.

Tracing wages paid to the union contract listing wages per job is an example of the rights and obligations assertion.

An imprest payroll account:

AS#5 states that:

Substantive analytical procedures for payroll include:

Most auditors perform an audit of outsourced service firms themselves.

The difference between a SAS 70 Type I and Type II report is:

An Introduction to Auditing

Overview of an Integrated Audit

The Auditors Role in Society

Legal Environment Affecting Audits Pt Iii Executing an Integrated Audit

Client Acceptance and Continuance and Preliminary Engagement Procedures

Audit Planning and Risk Assessment

Internal Control, Understanding the Clients Internal Control Over Financial Reporting and Auditing Design Effectiveness

Planning and Testing Operating Effectiveness of Internal Control Over Financial Reporting

Substantive Procedures and the Financial Statement Audit

Auditing Revenue Process: Sales, Billing and Collection in the Health-Care Provider and Retailing Industries

Completing the Integrated Audit and Reporting

The Acquisition and Payments Cycle and Related Accounts: Purchases, Cash Disbursements and Other Related Activities in the Automotive Industry

Auditing Inventory Processes: Tracking and Costing Products in the Land Development and Home Building Industry

Assets, Liabilities and Equity Related to the Financing Cycle

Topics Beyond the Integrated Audit

Filters

Exam 13: Auditing Human Resources Cycle Process: Personnel and Payroll in Service Industries

Which of the following activities is usually performed by a service provider?

Most firms process their own payroll.

Auditors report their chargeable hours using timesheets.

Tracing wages paid to the union contract listing wages per job is an example of the rights and obligations assertion.

An imprest payroll account:

AS#5 states that:

Substantive analytical procedures for payroll include:

Most auditors perform an audit of outsourced service firms themselves.

The difference between a SAS 70 Type I and Type II report is:

An Introduction to Auditing

Overview of an Integrated Audit

The Auditors Role in Society

Legal Environment Affecting Audits Pt Iii Executing an Integrated Audit

Client Acceptance and Continuance and Preliminary Engagement Procedures

Audit Planning and Risk Assessment

Internal Control, Understanding the Clients Internal Control Over Financial Reporting and Auditing Design Effectiveness

Planning and Testing Operating Effectiveness of Internal Control Over Financial Reporting

Substantive Procedures and the Financial Statement Audit

Auditing Revenue Process: Sales, Billing and Collection in the Health-Care Provider and Retailing Industries

Completing the Integrated Audit and Reporting

The Acquisition and Payments Cycle and Related Accounts: Purchases, Cash Disbursements and Other Related Activities in the Automotive Industry

Auditing Inventory Processes: Tracking and Costing Products in the Land Development and Home Building Industry

Assets, Liabilities and Equity Related to the Financing Cycle

Topics Beyond the Integrated Audit

Filters