Multiple Choice
During the current year being audited, Hitech, Inc. changed from a conventional payroll punch clock to a computerized payroll time system. Factory employees now record time in and out with magnetic cards and the IT system automatically updates all payroll records. Because of this change
A) The auditor must audit through the computer.
B) Internal control has improved.
C) Without paper clock cards, part of the audit trail has been altered.
D) The potential for payroll related fraud has been diminished.
Correct Answer:
Verified
Correct Answer:
Verified
Q15: Which of the following is required of
Q24: In the weekly computer run to prepare
Q41: Effective internal control over the payroll function
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Q56: A substantive test of transactions to test
Q57: Effective internal control over unclaimed payroll checks
Q58: A surprise observation by an auditor of
Q59: The purpose of segregating the duties of
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Q63: Possible misstatements related to the occurrence assertion