Exam 6: The Expenditure Cycle Part II: Payroll Processing and Fixed Asset Procedures

The personnel action form provides authorization control by

The supervisor is the best person to determine the existence of a "phantom employee" and should distribute paychecks.

Describe an internal control that would prevent an employee from stealing a computer and then reporting it as scrapped.

The document that records the total amount of time spent on a production job is the

Which department authorizes changes to employee pay rates?

Where does the responsibility lie for reconciling the labor distribution summary and the payroll disbursement voucher?

Which of the following works like a credit card with the time clock?

Accounting conventions and IRS rules sometime specify the depreciation parameters to be used.

What is a personnel action form?

Which documents prompt the fixed asset department to create a fixed asset record?

Which internal control is not an important part of the payroll system?

Time cards capture the total time an individual worker spends on each production job.

Work centers provide the personnel action form, which triggers the payroll process.

Time cards are used by cost accounting to allocate direct labor charges to work in process.

Depreciation

Payroll processing can be automated easily because accounting for payroll is very simple.

Cost accounting updates work-in-process accounts from

Why should employees clocking on and off the job be supervised?

How are the following carried out in the Fixed Asset System: authorization, supervision, independent verification?

Describe an internal control procedure that would prevent a supervisor from stealing the unclaimed paychecks of employees who have been terminated.